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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 39.4GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.5%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.02%
Trailing Yield
$4.02
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
55%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TRUSTCO BANK CORP N Y (TRST) receives a "Hold" rating with a composite score of 47.4/100, ranked #353 out of 4446 stocks. Key factor scores: Quality 39/100, Value 50/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
TRUSTCO BANK CORP N Y (TRST) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TRUSTCO BANK CORP N Y Do?
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. TRUSTCO BANK CORP N Y (TRST) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Robert J. McCormick and employs approximately 820 people, headquartered in Glenville, New York. With a market capitalization of $780M, TRST is one of the notable companies in the Financials sector.
TRUSTCO BANK CORP N Y (TRST) Stock Rating — Hold (April 2026)
As of April 2026, TRUSTCO BANK CORP N Y receives a Hold rating with a composite score of 47.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TRST ranks #353 out of 4,446 stocks in our coverage universe. Within the Financials sector, TRUSTCO BANK CORP N Y ranks #123 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TRST Stock Price and 52-Week Range
TRUSTCO BANK CORP N Y (TRST) currently trades at $46.42. The stock lost $0.40 (0.9%) in the most recent trading session. The 52-week high for TRST is $48.45, which means the stock is currently trading -4.2% from its annual peak. The 52-week low is $27.18, putting the stock 70.8% above its annual trough. Recent trading volume was 61K shares, suggesting relatively thin trading activity.
Is TRST Overvalued or Undervalued? — Valuation Analysis
TRUSTCO BANK CORP N Y (TRST) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 13.56x, compared to the Financials sector average of 14.88x — a discount of 9%. The price-to-book ratio stands at 1.15x, versus the sector average of 1.22x. The price-to-sales ratio is 3.12x, compared to 0.90x for the average Financials stock. On an enterprise value basis, TRST trades at 10.34x EV/EBITDA, versus 3.26x for the sector.
Overall, TRST's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
TRUSTCO BANK CORP N Y Profitability — ROE, Margins, and Quality Score
TRUSTCO BANK CORP N Y (TRST) earns a quality factor score of 39/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 8.5%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.9% versus the sector average of 1.2%.
On a margin basis, TRUSTCO BANK CORP N Y reports gross margins of 0.0%. The operating margin is 30.1% (sector: 21.8%). Net profit margin stands at 22.9%, versus 17.7% for the average Financials stock. Revenue growth is running at 9.0% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
TRST Debt, Balance Sheet, and Financial Health
TRUSTCO BANK CORP N Y has a debt-to-equity ratio of 817.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $98M. Cash and equivalents stand at $42M.
TRST has a beta of 0.65, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for TRUSTCO BANK CORP N Y is 87/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TRUSTCO BANK CORP N Y Revenue and Earnings History — Quarterly Trend
In TTM 2026, TRUSTCO BANK CORP N Y reported revenue of $254M and earnings per share (EPS) of $0.87. Net income for the quarter was $58M. Gross margin was 0.0%. Operating income came in at $77M.
In Q3 2025, TRUSTCO BANK CORP N Y reported revenue of $66M and earnings per share (EPS) of $0.87. Net income for the quarter was $16M. Revenue grew 8.1% year-over-year compared to Q3 2024. Operating income came in at $21M.
In Q2 2025, TRUSTCO BANK CORP N Y reported revenue of $64M and earnings per share (EPS) of $0.79. Net income for the quarter was $15M. Revenue grew 6.4% year-over-year compared to Q2 2024. Operating income came in at $20M.
In Q1 2025, TRUSTCO BANK CORP N Y reported revenue of $63M and earnings per share (EPS) of $0.75. Net income for the quarter was $14M. Revenue grew 5.1% year-over-year compared to Q1 2024. Operating income came in at $19M.
Over the past 8 quarters, TRUSTCO BANK CORP N Y has demonstrated a growth trajectory, with revenue expanding from $60M to $254M. Investors analyzing TRST stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TRST Dividend Yield and Income Analysis
TRUSTCO BANK CORP N Y (TRST) currently pays a dividend yield of 4.0%. At this yield, a $10,000 investment in TRST stock would generate approximately $$402.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning TRST offers above-average income for its sector. With a net margin of 22.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
TRST Momentum and Technical Analysis Profile
TRUSTCO BANK CORP N Y (TRST) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TRST vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing TRST against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TRST vs S&P 500 (SPY) comparison to assess how TRUSTCO BANK CORP N Y stacks up against the broader market across all factor dimensions.
TRST Next Earnings Date
No upcoming earnings date has been announced for TRUSTCO BANK CORP N Y (TRST) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TRST? — Investment Thesis Summary
TRUSTCO BANK CORP N Y presents a balanced picture with arguments on both sides. The quality score of 39/100 flags below-average profitability. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 87/100) reduces downside risk.
In summary, TRUSTCO BANK CORP N Y (TRST) earns a Hold rating with a composite score of 47.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TRST stock.
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Institutional Research Dossier
TRUSTCO BANK CORP N Y (TRST) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on TrustCo Bank Corp NY (TRST). While the bank exhibits strong stability and above-average profitability metrics compared to the financial sector, its significantly elevated P/E ratio and debt-to-equity ratio raise concerns about valuation and financial risk. The bank's reliance on traditional banking services in a competitive landscape, coupled with a relatively low investment score, suggests limited growth potential, justifying a neutral stance.
The primary concern revolves around the disconnect between TRST's valuation multiples and its growth prospects. While the bank demonstrates operational efficiency through higher operating and net margins, its high P/E ratio indicates that the market may be overvaluing its future earnings potential. Furthermore, the substantial debt burden relative to its equity base introduces a degree of financial vulnerability, particularly in a rising interest rate environment. Investors should remain cautious, awaiting clearer signals of sustainable growth and improved capital allocation before considering a more bullish position.
Business Strategy & Overview
TrustCo Bank Corp NY operates as a traditional community bank, primarily focusing on deposit-taking and loan origination within its geographic footprint across New York, New Jersey, Vermont, Massachusetts, and Florida. The bank's core business revolves around providing personal and business banking services, including checking and savings accounts, mortgages, and commercial loans. A significant portion of its assets are allocated to real estate mortgage assets, reflecting its strategy as a real estate investment trust (REIT) focused on residential mortgage loans and mortgage-backed securities. This dual role as a traditional bank and a REIT exposes it to both interest rate risk and credit risk within the housing market.
The company's strategic positioning centers on maintaining a strong local presence through its network of banking offices and ATMs. This brick-and-mortar strategy aims to foster customer relationships and capture market share within its target communities. However, this approach may face challenges in the long term as digital banking solutions gain prominence and customers increasingly prefer online and mobile banking services. TrustCo's ability to adapt to these evolving customer preferences will be crucial for its future success.
TrustCo also offers wealth management and trust services, providing an additional revenue stream and diversifying its service offerings. These services include estate planning, asset management, and custodial services for individuals and corporate clients. While these services contribute to overall profitability, they represent a smaller portion of the bank's total revenue compared to its core banking operations. The bank's ability to grow its wealth management business will depend on its ability to attract and retain qualified financial advisors and compete with larger, more established wealth management firms.
The competitive landscape for TrustCo is characterized by a mix of large national banks, regional banks, and local community banks. The bank faces competition for deposits and loans from these various players, each with its own strengths and weaknesses. Large national banks offer a wider range of products and services, while community banks often provide more personalized customer service. TrustCo's success will depend on its ability to differentiate itself from its competitors by offering competitive rates, superior customer service, and a strong community presence.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9.0%
Sector: 9.4%
IN LINE
Economic Moat Analysis
TrustCo Bank Corp NY likely possesses a Narrow economic moat. This assessment is based on a combination of factors, primarily its established local presence and customer relationships within its operating regions. While the bank does not exhibit dominant market share or proprietary technology, its long-standing history and community focus create a degree of customer loyalty and brand recognition. This local presence can act as a barrier to entry for new competitors, particularly those lacking established relationships with local businesses and residents.
The bank's focus on traditional banking services, such as deposit-taking and loan origination, does not lend itself to significant network effects or switching costs. Customers can easily switch banks to obtain better rates or services, limiting TrustCo's ability to retain customers solely based on its existing network. However, the convenience of local branches and the personalized service offered by community banks can create a degree of customer stickiness, particularly for customers who value face-to-face interactions.
TrustCo's intangible assets, such as its brand reputation and customer relationships, contribute to its narrow moat. These assets are built over time through consistent service quality and community involvement. However, these intangible assets are not insurmountable, and competitors can erode them by offering superior products, services, or customer experiences. The bank's ability to maintain and strengthen its brand reputation will be crucial for sustaining its competitive advantage.
The bank's cost advantages are likely limited. As a relatively small regional bank, TrustCo may not benefit from the same economies of scale as larger national banks. While it may be able to achieve some cost efficiencies through its branch network and operational processes, these advantages are unlikely to be significant enough to create a wide economic moat. The bank's ability to manage its operating expenses effectively will be important for maintaining its profitability.
Efficient scale is not a significant factor in TrustCo's competitive advantage. The banking industry is not characterized by natural monopolies or oligopolies, and there is ample room for multiple competitors to operate within a given market. While TrustCo's branch network provides a certain level of scale, it is not a dominant factor in its ability to compete effectively. The bank's success depends more on its ability to offer competitive products and services and maintain strong customer relationships.
Financial Health & Profitability
TrustCo's financial health presents a mixed picture. While the bank demonstrates strong profitability metrics, its high debt-to-equity ratio raises concerns about its financial leverage. The bank's revenue has shown consistent growth over the past few years, with a 9.0% increase in the most recent TTM period, aligning with the sector average of 9.3%. This growth suggests that the bank is effectively expanding its business and capturing market share within its operating regions.
The bank's profitability metrics are generally above average compared to the financial sector. Its operating margin of 30.1% and net margin of 22.9% exceed the sector averages of 22.0% and 17.8%, respectively. This indicates that TrustCo is efficiently managing its operations and generating strong profits from its revenue. However, the Return on Equity (ROE) of 8.5% is equal to the sector average, suggesting that the bank's profitability is not significantly higher than its peers.
Analyzing the quarterly financial history reveals a trend of declining net income and operating margins from FY2022 to the most recent quarter, Q3 FY2025. While revenue has continued to grow, the rate of growth has slowed, and profitability has decreased. This trend may be due to increased operating expenses, higher interest rates, or a combination of factors. The bank's ability to reverse this trend and improve its profitability will be crucial for its future financial performance.
The bank's balance sheet exhibits a high level of leverage, with a debt-to-equity ratio of 817.00, significantly exceeding the sector average of 115.00. This high level of debt increases the bank's financial risk and makes it more vulnerable to adverse economic conditions. The bank's ability to manage its debt effectively and reduce its leverage will be important for improving its financial stability.
The bank's current ratio of 1.12 indicates that it has sufficient liquid assets to cover its short-term liabilities. However, the negative free cash flow of $-13.03M suggests that the bank is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This negative free cash flow may be due to increased investments in its branch network or other strategic initiatives. The bank's ability to improve its free cash flow will be important for funding its future growth and maintaining its financial flexibility.
Valuation Assessment
TrustCo's valuation appears stretched based on several key metrics. The company's P/E ratio of 49.0x is significantly higher than the financial sector average of 15.5x, suggesting that the stock is overvalued relative to its earnings. This high P/E ratio may reflect investor expectations of future growth, but it also introduces a higher degree of risk, as any disappointment in earnings could lead to a significant price correction.
The EV/EBITDA ratio of 8.9x is also higher than the sector average of 3.5x, further supporting the conclusion that the stock is overvalued. This metric compares the company's enterprise value to its earnings before interest, taxes, depreciation, and amortization, providing a more comprehensive view of its valuation than the P/E ratio. The higher EV/EBITDA ratio suggests that investors are paying a premium for TrustCo's earnings relative to its peers.
Given the bank's relatively modest growth prospects and its high debt-to-equity ratio, the current valuation appears unjustified. While the bank demonstrates strong profitability metrics, its high valuation multiples suggest that the market may be overestimating its future earnings potential. Investors should exercise caution and consider the potential for a valuation correction before investing in TrustCo.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise fair value for the stock. However, based on the available data, it is likely that the current market price exceeds the intrinsic value of the company. The bank's high valuation multiples and its limited growth potential suggest that the stock is not currently an attractive investment opportunity.
Compared to its historical valuation, TrustCo's current P/E ratio is elevated. This suggests that the stock is trading at a premium to its historical average, further supporting the conclusion that it is overvalued. Investors should consider the historical valuation trends when assessing the current market price and determining whether it represents a fair value for the company.
Risk & Uncertainty
TrustCo faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is interest rate risk. As a traditional bank that relies on net interest income, TrustCo is vulnerable to changes in interest rates. A rising interest rate environment could increase the bank's funding costs and reduce its net interest margin, negatively impacting its profitability. The bank's significant holdings of mortgage-backed securities also expose it to interest rate risk, as the value of these securities could decline as interest rates rise.
Credit risk is another significant concern for TrustCo. The bank's loan portfolio is primarily concentrated in residential mortgages, making it vulnerable to downturns in the housing market. A decline in housing prices or an increase in mortgage defaults could lead to significant losses for the bank. The bank's ability to manage its credit risk effectively will be crucial for maintaining its financial stability.
Competition from larger national banks and online lenders poses a threat to TrustCo's market share. These competitors offer a wider range of products and services and may be able to offer more competitive rates. The bank's ability to differentiate itself from its competitors and maintain its customer base will be important for its future success. The increasing adoption of digital banking solutions also presents a challenge for TrustCo, as customers increasingly prefer online and mobile banking services. The bank's ability to adapt to these evolving customer preferences will be crucial for its long-term growth.
Regulatory risk is also a factor for TrustCo. The banking industry is heavily regulated, and changes in regulations could negatively impact the bank's business. For example, changes in capital requirements or lending regulations could increase the bank's costs and reduce its profitability. The bank's ability to comply with all applicable regulations will be essential for maintaining its license to operate.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTrustCo's consistent profitability and strong operating margins demonstrate efficient management and a resilient business model, justifying a premium valuation.
BULL VIEWThe bank's focus on traditional banking services and its established local presence provide a stable source of revenue and a competitive advantage in its target markets.
BULL VIEWTrustCo's high stability score indicates lower volatility compared to peers, making it an attractive investment for risk-averse investors seeking steady returns.
The Bear Case
BEAR VIEWTrustCo's significantly elevated P/E ratio compared to the sector suggests overvaluation, making it vulnerable to a price correction if growth expectations are not met.
BEAR VIEWThe bank's high debt-to-equity ratio increases its financial risk and makes it more susceptible to adverse economic conditions, particularly rising interest rates.
BEAR VIEWTrustCo's relatively low investment score indicates limited growth potential and a lack of innovation, hindering its ability to compete effectively in the long term.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TRST and 4,400+ other equities.
TRUSTCO BANK CORP N Y exhibits a 112% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.9%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
30.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
22.9%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+62%
Income Projection audit
A $10,000 investment would generate approximately $402 annually in dividends at the current trailing rate.
