Trustco Bank Corp N Y (NASDAQ: TRST)

TrustCo Bank Corp NY, commonly referred to as TrustCo, is a savings and loan holding company operating primarily in the banking industry. TrustCo's operations span across the Capital District area of New York State and central Florida, providing a wide range of financial services to both individuals and businesses.

The company's main business activities are divided into three segments: Banking, Trustco Financial Services, and ORE Subsidiary Corp. The Banking Segment, which is the largest part of TrustCo's business, accounts for the majority of its revenue. This segment provides various financial services, including deposit products, loan products, and investment services. Trustco Bank, a subsidiary of TrustCo, operates 156 automatic teller machines and 140 banking offices in New York and Florida. These offices offer a full array of deposit products, such as checking and savings accounts, certificates of deposit, and individual retirement accounts. Additionally, Trustco Bank provides a range of loan products, including residential and commercial mortgage loans, home equity loans, and personal loans.

Trustco Financial Services, another subsidiary of TrustCo, offers trust and investment services to individuals and businesses. This segment provides a range of services, including estate planning, asset management, and retirement planning. Furthermore, Trustco Financial Services offers custodial services and acts as a trustee for various types of employee benefit plans and corporate pension and profit sharing trusts.

ORE Subsidiary Corp, yet another subsidiary of TrustCo, holds and manages certain foreclosed properties acquired by the bank. The primary activity of this subsidiary is to manage and dispose of these properties, which are primarily residential and commercial real estate.

In terms of competition, TrustCo faces strong competition in its market areas, both in attracting deposits and making loans. Its primary competitors include local branch operations of super-regional banks, branch offices of money center banks, and locally based commercial banks and savings institutions. TrustCo effectively competes in this environment by providing a full range of financial services based on a tradition of financial strength and integrity.

TrustCo is subject to regulation by the Federal Reserve Board and the Office of the Comptroller of the Currency (OCC). The company is also subject to the capital requirements of the Basel III framework, which requires banks to hold a minimum amount of capital in relation to their risk-weighted assets. TrustCo is considered to be well-capitalized, with a Tier 1 leverage ratio of 10.78% and a total risk-based capital ratio of 20.15% as of December 31, 2023.

TrustCo's capital requirements are based on its risk-weighted assets, which are calculated using a standardized approach. The company's capital requirements include a Common Equity Tier 1 (CET1) capital ratio of 6.5%, a Tier 1 capital ratio of 8.0%, and a total capital ratio of 10.5%.