Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is This Bank Worth Your Trust?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

TrustCo Bank (Nasdaq: TRST  ) has come a long way since the last recession, thanks to its conservative lending policies. The company wasn't much affected during the housing collapse compared with its risk-taking mortgage peers.

In its most recent quarter, TrustCo posted 10.4% growth in net income, increasing to $9.2 million. The company earned $0.10 per share, just above the market expectation of $0.09. This regional bank benefited from the growth in its core loans and deposits. Average deposits were noticeably up by 6.6% to $228.8 million, while average loans were also up by 4.8% to $112.8 million. TrustCo has also managed to decrease its non performing assets by $1.3 million over the past three months, shrinking them down to to 1.27% from 1.44% last year.

Lately, many regional banks, including Hudson City Bancorp (Nasdaq: HCBK  ) and Flagstar Bancorp (NYSE: FBC  ) , have seen a significant fall in their provisions for loan losses. TrustCo has also seen a 13.5% drop in its provisions, which helps profits. It's evident in its non-performing loans coverage ratio, which tells us how many times the loss incurred by non-performing loans could be covered by the money the bank has set aside. As TrustCo's loan quality has improved, it has managed to widen its coverage ratio to 1.0 from 0.8 a year ago.

As TrustCo grew in revenue figures and managed to curb its core operating expenses, its efficiency ratio -- which calculates non-interest expenses as a percentage of net revenue -- dropped to 46.5% from 49% in the same quarter last year. A fall in this ratio shows that the company has decreased expenses or increased income, becoming more efficient either way.

The Foolish bottom line
The banking sector has recently braved some choppy waters. Now things seem to be stabilizing, and that's even better news for TrustCo, which has maintained its high standards despite the adverse economic conditions. As the economy recovers, this bank is one to watch.

Stay updated on this stock by adding it to your Foolish Watchlist. It's free!

Fool contributor Navjot Kaur owns no shares in any of the companies mentioned in this article.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1745297, ~/Articles/ArticleHandler.aspx, 10/26/2016 12:28:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:02 PM
FBC $26.46 Down -0.97 -3.54%
Flagstar Bancorp CAPS Rating: ***
HCBK.DL $0.00 Down +0.00 +0.00%
Hudson City Bancor… CAPS Rating: ***
TRST $7.15 Down -0.05 -0.69%
TrustCo Bank New Y… CAPS Rating: *****