TrustCo Bank Corp NY (TRST) Bundle
A Brief History of TrustCo Bank Corp NY
TrustCo Bank Corp NY, listed on NASDAQ under the ticker TRST, has seen significant developments in its financial trajectory as of 2024. The bank continues to build on its foundation through strategic growth initiatives and a focus on customer relationships.
Recent Financial Performance
As of the third quarter of 2024, TrustCo reported a net income of $12.9 million, which translates to $0.68 diluted earnings per share. This is a decrease from $14.7 million or $0.77 diluted earnings per share reported in the same quarter of 2023. For the nine months ending September 30, 2024, net income stood at $37.6 million, down from $48.9 million in the prior year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Interest Income | $38.7 million | $42.2 million | $113.0 million | $133.2 million |
| Noninterest Income | $4.9 million | $5.6 million | $15.4 million | $13.8 million |
| Net Income | $12.9 million | $14.7 million | $37.6 million | $48.9 million |
| Return on Average Equity (ROAE) | 7.74% | 9.32% | 7.74% | 9.32% |
| Book Value per Share | $35.19 | $32.80 | N/A | N/A |
Loan Portfolio Growth
TrustCo's average loan portfolio increased by $127 million, or 2.6%, in the third quarter of 2024 compared to the same period of the previous year. This growth is attributed to a robust campaign to promote the utilization of home equity lines of credit (HECLs) among existing customers.
Asset Quality and Capital Ratios
As of September 30, 2024, the bank's total assets were valued at approximately $6.11 billion. The consolidated equity to assets ratio increased to 10.95%, reflecting a strong capital position. The allowance for credit losses on loans was reported at $49.95 million, with nonperforming loans constituting 0.38% of total loans.
Operational Highlights
TrustCo has maintained a consistent focus on controlling noninterest expenses, which amounted to $26.2 million in the third quarter of 2024. This is a decrease from $27.5 million in the previous quarter. The efficiency ratio for the third quarter was reported at 59.65%, demonstrating the bank's operational effectiveness.
Market Position
TrustCo operates 138 full-service banking offices and employs approximately 735 full-time equivalent employees as of September 30, 2024. The strategic focus on enhancing customer service and product offerings has positioned TrustCo favorably in the competitive banking landscape.
A Who Owns TrustCo Bank Corp NY (TRST)
Shareholder Composition
As of 2024, the ownership of TrustCo Bank Corp NY (TRST) is divided among institutional investors, individual shareholders, and insiders. The table below summarizes the ownership distribution:
| Ownership Type | Percentage Owned | Number of Shares |
|---|---|---|
| Insider Ownership | 4.58% | 870,000 |
| Institutional Ownership | 55.23% | 10,500,000 |
| Retail Ownership | 40.19% | 7,600,000 |
Major Institutional Shareholders
The following table lists the top institutional shareholders of TrustCo Bank Corp as of 2024:
| Institution | Percentage Owned | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 12.34% | 2,300,000 |
| BlackRock, Inc. | 9.87% | 1,800,000 |
| State Street Corporation | 8.76% | 1,600,000 |
| Dimensional Fund Advisors LP | 7.45% | 1,400,000 |
| Wellington Management Co. LLP | 5.23% | 1,000,000 |
Insider Ownership
Insider ownership at TrustCo Bank is relatively modest. Key insiders include:
- Robert J. McCormick - Chairman, President, and CEO
- Robert Leonard - Executive Vice President
- Other executive officers and board members
Recent Changes in Ownership
In the past year, there has been a slight increase in institutional ownership, reflecting growing confidence in TrustCo Bank's financial performance. The following table outlines the changes:
| Ownership Type | 2023 (%) | 2024 (%) | Change (%) |
|---|---|---|---|
| Insider Ownership | 4.60% | 4.58% | -0.02% |
| Institutional Ownership | 53.85% | 55.23% | +1.38% |
| Retail Ownership | 41.55% | 40.19% | -1.36% |
Market Capitalization
As of October 2024, TrustCo Bank Corp NY has a market capitalization of approximately $600 million, with a stock price of $33.07 per share.
Financial Performance Indicators
Key performance metrics that may influence ownership trends include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $12.9 million | $14.7 million |
| Book Value per Share | $35.19 | $32.80 |
| Return on Average Equity (ROAE) | 7.74% | 9.32% |
Conclusion on Ownership Trends
TrustCo Bank's ownership structure reflects a blend of institutional confidence and retail participation, with a modest insider stake. The increase in institutional ownership suggests a positive outlook for the bank's future performance.
TrustCo Bank Corp NY (TRST) Mission Statement
Overview of Mission Statement
The mission of TrustCo Bank Corp NY (TRST) focuses on delivering high-quality financial services while maintaining a commitment to community involvement and customer satisfaction. The bank aims to provide personalized banking solutions that meet the diverse needs of its customers.
Core Values
- Customer Commitment: TrustCo emphasizes building strong relationships with customers through exceptional service.
- Integrity: The bank operates with transparency and ethical standards in all interactions.
- Community Engagement: TrustCo is dedicated to supporting local communities through various initiatives and investments.
Strategic Objectives
TrustCo's strategic objectives include enhancing operational efficiency, expanding its product offerings, and leveraging technology to improve customer experience. The bank continuously seeks to adapt to changing market conditions while ensuring financial stability.
Financial Performance Indicators
As of September 30, 2024, TrustCo reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Income | $12.9 million |
| Diluted Earnings Per Share | $0.68 |
| Net Interest Income | $38.7 million |
| Return on Average Equity (ROAE) | 7.74% |
| Consolidated Equity to Assets | 10.95% |
| Book Value Per Share | $35.19 |
| Total Assets | $6.074 billion |
| Total Deposits | $5.264 billion |
Recent Developments
In Q3 2024, TrustCo saw an increase in average loans by $127 million or 2.6% compared to Q3 2023. The bank's efforts in promoting home equity lines of credit (HECLs) contributed significantly to this growth.
Key Ratios
The following ratios provide insight into TrustCo's operational efficiency and financial health:
| Ratio | Value |
|---|---|
| Efficiency Ratio | 59.65% |
| Net Interest Margin | 2.61% |
| Nonperforming Loans to Total Loans | 0.38% |
| Coverage Ratio | 256.9% |
Conclusion
TrustCo Bank Corp NY's mission statement and operational strategy reflect a commitment to customer satisfaction, community engagement, and financial prudence. The bank's solid financial performance in 2024 demonstrates its ability to navigate the challenges of the banking industry effectively.
How TrustCo Bank Corp NY (TRST) Works
Overview of TrustCo Bank Corp NY
TrustCo Bank Corp NY, traded under the ticker TRST, is a financial institution headquartered in Glenville, New York. The bank operates through its subsidiary, Trustco Bank, and primarily provides retail banking services. The bank focuses on the origination of loans, including residential mortgages, home equity lines of credit, and commercial loans.
Financial Performance in 2024
As of the third quarter of 2024, TrustCo reported a net income of $12.9 million, with diluted earnings per share of $0.68. This reflects a decrease from $14.7 million or $0.77 per share in the third quarter of 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $12.9 million | $14.7 million |
| Earnings Per Share (Diluted) | $0.68 | $0.77 |
| Return on Average Equity (ROAE) | 7.74% | Not Available |
| Net Interest Income | $38.7 million | $42.2 million |
Loan Portfolio
The average loan portfolio continued to grow, with an increase of $127.0 million or 2.6% year-over-year in the third quarter of 2024. The breakdown of loan types includes:
- Residential loans: $4.375 billion
- Home equity lines of credit (HELOCs): $380.4 million
- Commercial loans: $18.1 million increase year-over-year
Deposit Trends
Average deposits grew by $15.3 million or 0.3% year-over-year. The composition of deposits as of September 30, 2024, includes:
| Type of Deposit | Amount | Interest Rate |
|---|---|---|
| Interest-bearing checking accounts | $1.000 billion | 0.12% |
| Money market accounts | $499.4 million | 1.72% |
| Savings | $1.122 billion | 0.27% |
| Time deposits | $1.880 billion | 4.01% |
Capital Ratios
As of September 30, 2024, the bank's capital ratios were as follows:
- Consolidated equity to assets: 10.95%
- Book value per share: $35.19
Asset Quality Metrics
TrustCo maintains strong asset quality, with the following metrics reported as of September 30, 2024:
| Metric | Value |
|---|---|
| Nonperforming Loans (NPLs) | $19.4 million |
| Nonperforming Assets (NPAs) | $21.9 million |
| Allowance for Credit Losses on Loans | $50.0 million |
| Coverage Ratio (Allowance for Credit Losses to NPLs) | 256.9% |
Non-Interest Income and Expenses
In the third quarter of 2024, TrustCo reported non-interest income of $4.9 million. Non-interest expenses were $26.2 million, reflecting a decrease compared to previous quarters.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Non-Interest Income | $4.9 million | $4.5 million |
| Non-Interest Expenses | $26.2 million | $27.5 million |
How TrustCo Bank Corp NY (TRST) Makes Money
Net Interest Income
TrustCo Bank generates a significant portion of its revenue through net interest income, which was reported at $38.7 million for the third quarter of 2024. This reflects an increase of $883 thousand or 2.3% compared to the previous quarter, driven primarily by loan growth and lower costs of deposits.
The net interest margin for the third quarter of 2024 stood at 2.61%, an improvement from 2.53% in the second quarter. The yield on interest-earning assets increased to 4.11%, up from 4.06%. The cost of interest-bearing liabilities decreased to 1.94% from 1.97% during the same period.
Loan Portfolio Growth
TrustCo's average loan portfolio increased by $127 million or 2.6% in the third quarter of 2024 compared to the same period in 2023. Key components of this growth included:
- Average residential loans rose by $50.4 million (1.2%)
- Home equity lines of credit increased by $60 million (18.7%)
- Average commercial loans grew by $18.1 million (6.9%)
This strategic focus on home equity lines of credit helped TrustCo increase customer engagement and utilize existing credit lines.
Non-Interest Income
In addition to net interest income, TrustCo generates non-interest income, which totaled $4.931 million in the third quarter of 2024. This includes:
- Trustco Financial Services income: $2.044 million
- Fees for services to customers: $2.482 million
- Net gains on equity securities: $23 thousand
Non-interest income, excluding net gains on equity securities, was $4.908 million, compared to $4.291 million in the previous quarter.
Expense Management
TrustCo Bank has successfully managed its non-interest expenses, which decreased to $26.200 million in the third quarter of 2024 from $26.459 million in the prior quarter. This reflects ongoing efforts to control costs and improve operational efficiency, contributing positively to net income.
Financial Performance Summary
The financial performance of TrustCo Bank Corp NY is summarized in the table below:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $38.7 million | $37.8 million | $42.2 million |
| Non-Interest Income | $4.931 million | $5.651 million | $4.574 million |
| Total Non-Interest Expense | $26.200 million | $26.459 million | $27.460 million |
| Net Income | $12.875 million | $12.551 million | $14.680 million |
| Return on Average Assets | 0.84% | 0.82% | 0.96% |
| Return on Average Equity | 7.74% | 7.76% | 9.32% |
Conclusion
The financial health of TrustCo Bank Corp NY is characterized by strong net interest income, effective loan growth strategies, and disciplined expense management, positioning the bank favorably within the competitive landscape as of 2024.
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Article updated on 8 Nov 2024
Resources:
- TrustCo Bank Corp NY (TRST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TrustCo Bank Corp NY (TRST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TrustCo Bank Corp NY (TRST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.