TrustCo Bank Corp NY (TRST) Stock EPS Growth Tests Long‑Term Bearish Narratives
TrustCo Bank Corp NY (TRST) has put up another solid quarter on the headline numbers, with Q2 2026 revenue at US$50.9 million and basic EPS of US$0.98, set against trailing 12 month figures of US$194.8 million in revenue and EPS of US$3.61 that reflect 21.7% earnings growth over the past year. Over recent quarters the company has seen revenue move from US$45.9 million in Q2 2025 to US$50.9 million in Q2 2026 and basic EPS rise from US$0.79 to US$0.98. Over the same period, trailing net profit margin has shifted from 30.2% to 33.4%, which frames this update as a test of how sustainable its current profitability profile really is.
See our full analysis for TrustCo Bank Corp NY.With the latest results on the table, the next step is to line these numbers up against the prevailing market and community narratives to see which views hold up and which may need a rethink.
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Net profit margin holds at 33.4%
- TrustCo Bank Corp NY reported a trailing 12 month net profit margin of 33.4%, compared with 30.2% a year earlier, alongside trailing net income of US$65.1 million on US$194.8 million of revenue.
- What is interesting for a bullish narrative around a conservative regional bank is that this higher margin runs alongside a modest cost to income ratio and steady loan book, which partly aligns with the idea of a resilient franchise but also highlights some trade offs:
- The trailing cost to income ratio sits at 55.7% and the latest quarter shows net income of US$17.0 million on Q2 2026 revenue of US$50.9 million. This indicates that profitability is being held with a middle of the road cost base rather than very low expenses.
- Total loans reached US$5.4b in Q2 2026 while non performing loans were US$21.8 million, which is a small portion of the book and fits the story of cautious lending. Yet the rise in non performing loans from US$17.9 million in Q2 2025 shows that credit quality is something investors still need to track closely.
EPS trend contrasts with five year decline
- Over the last 12 months, basic EPS on a trailing basis was US$3.61, up from US$2.81 a year earlier, yet the five year earnings record shows EPS declining at about 3.2% per year over that longer period.
- Critics who lean bearish on TrustCo Bank Corp NY often focus on that longer term earnings decline, and the current numbers both challenge and support pieces of that concern:
- On a quarterly view, basic EPS moved from US$0.75 in Q1 2025 to US$0.98 in Q2 2026, and trailing 12 month net income climbed from US$51.0 million to US$65.1 million over roughly the same span. This makes the recent period look stronger than the five year average would suggest.
- At the same time, the fact that the five year earnings trend still shows a decline means bears can argue that a single year of 21.7% trailing earnings growth does not yet overturn the longer record, so investors who care most about durability may treat the recent improvement cautiously.
P/E premium to banks, below market
- The stock trades on a trailing P/E of 14.6x, above the US Banks industry average of 12.2x and the peer average of 12.8x, while the current share price of US$55.94 also sits above the DCF fair value estimate of about US$49.41.
- Supporters with a bullish tilt sometimes argue that TrustCo Bank Corp NY deserves a premium to other banks, and the current valuation gives some backing to that idea but also sets clear boundaries on it:
- On one side, the trailing P/E is still below the broader US market multiple of 19.2x and the company pays a 2.72% dividend yield, which may appeal to investors who want a mix of income and earnings support without paying the full market multiple.
- On the other, the share price being above the DCF fair value estimate of US$49.41 suggests that anyone using that cash flow model will view the stock as pricing in more than that specific valuation implies, which can limit how far a bullish case based purely on value can go.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on TrustCo Bank Corp NY's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
If TrustCo Bank Corp NY's mix of improving margins, valuation questions and mixed long term EPS trend leaves you with more questions than answers, now is a good time to review the underlying figures, weigh both the concerns and the upside, and see what the 2 key rewards and 1 important warning sign means for your own thesis.
See What Else Is Out There
TrustCo Bank Corp NY's premium P/E to banking peers, together with a share price above its DCF fair value, raises questions about how much upside is already priced in.
If you are questioning whether that pricing leaves enough room for your own return expectations, it makes sense to compare it against the 47 high quality undervalued stocks to see where other stocks might offer more headroom.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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