NasdaqGS:TRST

Stock Analysis Report

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Executive Summary

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. More Details

Rewards

Trading at 25.5% below our estimate of its fair value

Pays a high and reliable dividend of 4.75%

Risk Analysis

No risks detected for TRST from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has TrustCo Bank Corp NY's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

TRST

2.3%

US Mortgage

0.09%

US Market


1 Year Return

-30.5%

TRST

-23.1%

US Mortgage

12.6%

US Market

Return vs Industry: TRST underperformed the US Mortgage industry which returned -23.1% over the past year.

Return vs Market: TRST underperformed the US Market which returned 12.6% over the past year.


Shareholder returns

TRSTIndustryMarket
7 Day2.3%2.3%0.09%
30 Day-0.9%-2.2%-1.6%
90 Day-6.4%-26.3%7.9%
1 Year-27.7%-30.5%-20.9%-23.1%15.2%12.6%
3 Year-24.2%-31.7%12.4%2.7%38.9%29.6%
5 Year15.3%-3.5%10.6%-4.0%87.6%66.5%

Price Volatility Vs. Market

How volatile is TrustCo Bank Corp NY's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TrustCo Bank Corp NY undervalued compared to its fair value and its price relative to the market?

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRST ($5.74) is trading below our estimate of fair value ($7.71)

Significantly Below Fair Value: TRST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRST is good value based on its PE Ratio (10.4x) compared to the US Mortgage industry average (11.1x).

PE vs Market: TRST is good value based on its PE Ratio (10.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRST is poor value based on its PEG Ratio (7.7x)


Price to Book Ratio

PB vs Industry: TRST is overvalued based on its PB Ratio (1x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is TrustCo Bank Corp NY forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRST's forecast earnings growth (1.3% per year) is below the savings rate (2.2%).

Earnings vs Market: TRST's earnings (1.3% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: TRST's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRST's revenue (5.2% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: TRST's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRST's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TrustCo Bank Corp NY performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRST has high quality earnings.

Growing Profit Margin: TRST's current net profit margins (31.9%) are lower than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: TRST's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: TRST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRST had negative earnings growth (-12%) over the past year, making it difficult to compare to the Mortgage industry average (6.9%).


Return on Equity

High ROE: TRST's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is TrustCo Bank Corp NY's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: TRST's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: TRST has a sufficient allowance for bad loans (220%).

Low Risk Liabilities: 95% of TRST's liabilities are made up of primarily low risk sources of funding.

Loan Level: TRST has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: TRST's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: TRST has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

What is TrustCo Bank Corp NY current dividend yield, its reliability and sustainability?

4.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRST's dividend (4.75%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: TRST's dividend (4.75%) is in the top 25% of dividend payers in the US market (4.7%)


Stability and Growth of Payments

Stable Dividend: TRST's dividends per share have been stable in the past 10 years.

Growing Dividend: TRST's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.6%), TRST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Rob McCormick (56 yo)

16.67yrs

Tenure

US$3,036,181

Compensation

Mr. Robert Joseph McCormick, also known as Rob, has been President and Chief Executive Officer of TrustCo Bank Corp NY since January 2004 and its Chairman of the Board since January 01, 2019. Mr. McCormick ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD3.04M) is above average for companies of similar size in the US market ($USD1.99M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert McCormick
President16.67yrsUS$3.04m1.55%
$ 8.6m
Michael Ozimek
Executive VP & CFO5.75yrsUS$1.15m0.015%
$ 85.0k
Kevin Curley
Executive VP & COO1.75yrsUS$1.18m0.11%
$ 615.0k
Robert Leonard
Executive VP of Personnel & Chief Risk Officerno dataUS$1.92m0.11%
$ 613.6k
Scot Salvador
Executive VP & Chief Lending Officer16.67yrsUS$1.72m0.20%
$ 1.1m
Michael Hall
General Counsel & Corporate Secretary5.67yrsno data0.011%
$ 60.3k
Eric Schreck
Senior VP & Treasurer10.67yrsUS$526.72k0.10%
$ 574.6k

8.2yrs

Average Tenure

54yo

Average Age

Experienced Management: TRST's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert McCormick
President16.67yrsUS$3.04m1.55%
$ 8.6m
Robert McCormick
Honorary Directorno dataUS$234.70kno data
Nancy McNamara
Honorary Directorno dataUS$525.73kno data
Richard Murray
Honorary Directorno datano datano data
Anthony Marinello
Independent Director21.67yrsUS$141.51k0.11%
$ 588.2k
James Murphy
Honorary Directorno datano datano data
Thomas Maggs
Independent Director15.17yrsUS$141.51k0.078%
$ 432.9k
Dennis DeGennaro
Lead Independent Director1.67yrsUS$141.51k0.12%
$ 656.5k
Brian Flynn
Independent Director4.58yrsUS$141.51k0.011%
$ 63.2k
Lisa Lucarelli
Independent Director2.83yrsUS$141.51k0.010%
$ 57.8k
Kimberly Russell
Director0.083yrno data0.0021%
$ 11.5k
Frank Silverman
Director0.083yrno data0.010%
$ 57.4k

2.3yrs

Average Tenure

72.5yo

Average Age

Experienced Board: TRST's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TRST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TrustCo Bank Corp NY's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TrustCo Bank Corp NY
  • Ticker: TRST
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$553.523m
  • Shares outstanding: 96.43m
  • Website: https://www.trustcobank.com

Number of Employees


Location

  • TrustCo Bank Corp NY
  • 5 Sarnowski Drive
  • Glenville
  • New York
  • 12302
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRSTNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1982
TC5DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1982

Biography

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 compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 05:55
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.