Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies [1][2][3] Company Summaries - **Adecco (AHEXY)**: This company provides a variety of services connecting colleagues with clients. The Zacks Consensus Estimate for its current year earnings has been revised downward by approximately 46.1% over the last 60 days [1] - **Carter Bankshares (CARE)**: A bank holding company offering various financial services including checking and savings accounts, loans, and retirement accounts. The Zacks Consensus Estimate for its current year earnings has been revised downward by 7.3% over the last 60 days [2] - **Cantaloupe (CTLP)**: A software and payments company that delivers end-to-end technology solutions for the unattended retail market. The Zacks Consensus Estimate for its current year earnings has been revised downward by nearly 6.7% over the last 60 days [3]

Financial Data and Key Metrics Changes - The company reported net income of $4.9 million, a decrease of $16.9 million or 77.5% compared to the previous quarter [10] - Diluted earnings per share were $0.16, down from $0.72 per share linked quarter [10] - Net interest income increased by $1.45 million or 2.7% compared to the linked quarter [15] - The tax equivalent net interest margin decreased by one basis point to 2.94% [15] Business Line Data and Key Metrics Changes - Total loans as of September 30 were $4.77 billion, an increase of $163.4 million or 3.5% linked quarter [10] - Commercial real estate loans increased by $82.6 million, commercial loans by $49.3 million, and construction loans by $49.1 million [10] - Non-performing assets increased to approximately $2.7 million, representing 0.42% of total assets [9][11] Market Data and Key Metrics Changes - The company’s securities portfolio was $2.56 billion, a decrease of $174.2 million or 6.4% from the previous quarter [11] - Deposits increased by $329.6 million or 5% on a linked quarter basis [14] - Loans with oil and gas industry exposure increased to $70.6 million, or 1.5% of total loans [11] Company Strategy and Development Direction - The company is focusing on repositioning its available-for-sale securities portfolio to enhance future net interest income and provide balance sheet flexibility [3] - There is an ongoing interest in potential acquisitions and hiring due to market disruptions caused by larger banks acquiring smaller institutions [25] - The company anticipates continued growth in trust fees and is exploring opportunities in metro markets for wealth management [41][42] Management's Comments on Operating Environment and Future Outlook - Management expects net interest margin to improve slightly in the fourth quarter, driven by loan growth and the restructuring of the securities portfolio [20][21] - The Texas economy is anticipated to grow at a faster pace than the overall U.S. growth rate [5] - Management is optimistic about the loan pipeline, which has rebounded to $1.8 billion, indicating strong future loan production [31] Other Important Information - The company repurchased 26,692 shares of common stock at an average price of $30.24 during the third quarter [15] - The effective tax rate for the third quarter was 3.7%, a decrease from 17.8% in the prior quarter [17] Q&A Session Summary Question: What is the expected net interest margin for the fourth quarter? - Management expects the net interest margin to be up slightly due to the impact of subordinated notes and the restructuring of securities [20][21] Question: Any updates on potential acquisitions or hiring? - Management is looking at a few institutions for potential acquisition and has made some new hires in light of market disruptions [25] Question: How is the loan pipeline looking entering the fourth quarter? - The loan pipeline is strong at $1.8 billion, with a good pull-through rate expected [31][32] Question: What is the outlook for trust fees and wealth management? - Management anticipates double-digit revenue growth in trust fees and is exploring metro market opportunities for wealth management [41][42] Question: How many rate cuts are anticipated through year-end and into 2026? - Management anticipates at least two rate cuts next year, depending on inflation and employment conditions [43]

Financial Data and Key Metrics Changes - Commercial loan commitments increased to $808 million from $659 million year-over-year, but loan outstandings contracted by $41.1 million compared to a growth of $163.5 million in the prior year [2] - Deposits rose significantly by $635.5 million during the quarter, primarily due to a seasonal increase in public funds deposits of $473.2 million [2] - Reported net interest margin (NIM) for the quarter was 3.17%, slightly down from 3.20% in the previous quarter, while core NIM expanded by nine basis points to 3.33% [4] - Non-interest income increased by $1.8 million or 8.8% compared to the third quarter of 2024 [4] - Non-interest expense rose by $2.1 million or 4.4% compared to the third quarter of 2024, driven by compensation costs and other expenses [5] Business Line Data and Key Metrics Changes - The provision for credit losses recorded was $517,000, with an average ratio of 1.28% at September 30, consistent with June 30 [4] - Net charge-offs for the core NIM were $480,000, annualized at three basis points [4] Market Data and Key Metrics Changes - The company expects $75 million to $100 million of outflows of public funds per month in the fourth quarter, continuing into the first quarter [10] - Competition for deposits remains fierce, particularly in the certificate of deposit (CD) market, with a couple hundred million dollars of CDs maturing each quarter [22][24] Company Strategy and Development Direction - The company plans to maintain a flat loan growth compared to December 31, 2024, while expecting net interest income growth of 12 to 14% compared to 2024 [5] - The company is focused on internal initiatives for efficiency and digital improvements, with no immediate plans for significant M&A activity [32] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the provision for credit losses will be event-driven, influenced by loan changes and economic-related assumptions [6] - The outlook for core NIM is expected to remain relatively flat, with strong new loan yields around 7% [12] - The company is cautious about the impact of potential Fed rate cuts, expecting minimal immediate effects on net interest income and NIM [25] Other Important Information - The company reported a non-interest expense of $100 million for 2024, with an expected growth of approximately 2 to 3% for 2025 [6] - The guidance for income taxes remains unchanged at 20 to 20.5% based on current statutory rates [6] Q&A Session Summary Question: What is the outlook for public funds commercial deposit inflows? - The company expects normal seasonal outflows of $75 million to $100 million per month in the fourth quarter, continuing into the first quarter [10] Question: Can you provide more details on the NIM outlook? - Core NIM is expected to be relatively flat, with new loan yields around 7% [12] Question: What is the status of the loan pipeline? - The loan pipeline is healthy, with expectations for some growth in the fourth quarter, contingent on prepayment activity [14] Question: How much of the loan book is floating rate? - Approximately one-third of the loan book remains floating rate [26] Question: What is the company's approach to capital deployment and buybacks? - The company plans to maintain buyback activity around $6 to $7 million per quarter, with flexibility based on earnings growth [29] Question: What is the company's appetite for M&A? - The appetite for M&A remains unchanged, with a focus on internal initiatives rather than pursuing acquisitions at this time [32]

Financial Data and Key Metrics Changes - TrustCo Bank Corp NY reported a net income of $16.3 million for Q3 2025, representing a 26.3% increase compared to Q3 2024, with a return on average assets of 1.02% and return on average equity of 9.29% [8][9] - The efficiency ratio improved by almost 9% year-over-year, indicating enhanced operational efficiency [5] - The consolidated equity-to-assets ratio was 10.90% for Q3 2025, slightly down from 10.95% in Q3 2024 [9] Business Line Data and Key Metrics Changes - Average loans grew by 2.5% or $125.9 million to $5.2 billion, with home equity loans increasing by $59.9 million or 15.7% [10][15] - Residential real estate loans increased by $34 million or 0.8%, while average commercial loans rose by $34.6 million or 12.4% [10] - Non-performing loans decreased to $18.5 million from $19.4 million year-over-year, with non-performing loans to total loans at 0.36% [9][18] Market Data and Key Metrics Changes - Total deposits reached $5.5 billion, up $217 million compared to the prior year, reflecting strong customer confidence [11] - The net interest margin for Q3 2025 was 2.79%, an increase of 18 basis points from the prior year [12] - The yield on interest-earning assets increased to 4.25%, while the cost of interest-bearing liabilities decreased to 1.9% [12] Company Strategy and Development Direction - The company aims to build long-term shareholder value through disciplined share repurchase programs, having repurchased nearly half of the approved one million shares [7] - TrustCo Bank Corp NY focuses on maintaining high-quality underwriting standards and conservative lending practices to manage credit risk effectively [10][17] - The company is exploring expansion opportunities in Pasco County, Florida, and other locations in downstate New York [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's competitive deposit offerings and the potential for net interest income upside due to maturing CDs [26][27] - The real estate market remains strong, contributing to recoveries and demand for loans, particularly in home equity lending [28][29] - The bank is well-positioned to continue delivering strong financial performance despite potential easing from the Federal Reserve [12] Other Important Information - The wealth management division had approximately $1.25 billion in assets under management, contributing significantly to non-interest income [13][14] - Total non-interest expense was $26.2 million, slightly down from the prior year, indicating effective cost management [14] Q&A Session Summary Question: Can you quantify the expected net interest income upside? - The highest rate offered is 4% for a three-month CD, with about $1 billion in CDs maturing over the next six months, expected to reprice favorably [26][27] Question: How many homes relate to the recoveries mentioned? - The $194,000 in recoveries corresponds to approximately five properties, indicating a strong real estate market with high demand [28][29] Question: What are the plans for branch expansion? - The company is considering expansion in Pasco County, Florida, and is also looking for opportunities in downstate New York [30][31]

Core Insights - Savers and cash investors have increasingly favored certificates of deposit (CDs) in recent years due to attractive interest rates, but financial advisers are now suggesting a reassessment as interest-rate cuts are anticipated [1] Group 1: Market Trends - The popularity of certificates of deposit among savers and cash investors has surged recently, driven by higher interest rates [1] - Financial advisers are warning that the current environment may shift, prompting a need for investors to explore alternative options as interest rates are expected to decline [1] Group 2: Financial Advisory Perspective - Some financial advisers believe that the time has come for investors to diversify their portfolios beyond CDs, especially in light of potential interest-rate cuts [1]