GLENVILLE, N.Y., Nov. 19, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) on November 18, 2025 declared a quarterly cash dividend of $0.38 per share, or $1.52 per share on an annualized basis. The dividend will be payable on January 2, 2026 to shareholders of record at the close of business on December 5, 2025. Chairman, President, and Chief Executive Officer Robert J. McCormick said: “We are very pleased that the financial strength demonstrated by our perform ...

Financial Performance - TrustCo recorded net income of $16.3 million, or $0.86 of diluted earnings per share, for Q3 2025, compared to $12.9 million, or $0.68 per share, in Q3 2024, representing a 26.3% increase in net income [145]. - For the nine months ended September 30, 2025, net income was $45.6 million, or $2.41 per diluted share, compared to $37.6 million, or $1.97 per share, in the same period in 2024, reflecting a 21.3% increase [146]. - The effective tax rate for Q3 2025 was 23.7%, slightly down from 23.8% in Q3 2024, with income tax expense recognized at $5.1 million compared to $4.0 million [209]. - Total shareholders' equity increased to $692.0 million as of September 30, 2025, from $669.0 million a year earlier [211]. - Shareholders' equity increased to $688,977, up from $653,026, indicating a strengthening of the company's capital base [228]. Interest Income and Margin - Net interest income increased by $12.2 million, or 10.8%, for the first nine months of 2025 compared to the same period in 2024, driven by higher interest income on loans and short-term investments [147]. - For Q3 2025, the net interest margin was 2.79%, an increase of 18 basis points compared to Q3 2024 [159]. - Net interest income rose by $4.4 million to $43.1 million in Q3 2025, with a net interest spread increase of 18 basis points to 2.35% [181]. - The net interest spread increased to 2.28%, up from 2.08%, suggesting improved profitability on interest-earning assets [228]. - Total interest-bearing deposits increased to $4,679,213, with a net interest income of $125,238, reflecting a year-over-year increase of $12,201 [228]. Asset Quality and Credit Losses - TrustCo experienced a decrease of $250 thousand in provision for credit losses in Q3 2025 compared to Q3 2024, indicating improved asset quality [148]. - The Company recorded a provision for credit losses of $250 thousand in Q3 2025, down from $500 thousand in Q3 2024, primarily due to loan growth [194]. - Nonperforming loans totaled $18.5 million as of September 30, 2025, a slight decrease from $18.8 million at December 31, 2024 [183]. - The net charge-off ratio for commercial loans was 0.00% for Q3 2025, compared to 0.02% in Q3 2024 [199]. - The Company has no subprime mortgages or loans acquired with deteriorated credit quality as of September 30, 2025 [191]. Loan and Deposit Growth - The average loan portfolio grew by $125.9 million to $5.18 billion in Q3 2025, with an average yield increase of 20 basis points to 4.32% [160]. - The average balance of home equity credit lines increased by 15.7% to $440.3 million in Q3 2025 compared to the prior year [169]. - The average balance of interest-bearing deposit accounts increased by $200.6 million to $4.70 billion in Q3 2025 [177]. - The average balance of Federal Funds sold and other short-term investments was $662.7 million for Q3 2025, up from $465.9 million in Q3 2024 [174]. - Commercial loans increased to $306,091 with an interest income of $12,851, indicating a strong demand for lending products [227]. Capital Ratios and Dividends - As of September 30, 2025, the Tier 1 leverage ratio for the Bank was 10.576%, exceeding the minimum requirement of 5.000% [213]. - The Common Equity Tier 1 (CET1) capital ratio was 18.669%, significantly above the minimum requirement of 6.500% [213]. - The Company’s dividend payout ratio was 43.68% of net income for Q3 2025, compared to 53.16% for Q3 2024, with a per-share dividend of $0.38 in Q3 2025 versus $0.36 in Q3 2024 [215]. - During the three months ended September 30, 2025, the Company repurchased 298,177 shares at an average price of $38.69, totaling $11.5 million [217]. - The consolidated equity to total assets ratio was 10.90% as of September 30, 2025, compared to 10.84% at December 31, 2024 [213]. Noninterest Income and Expenses - Noninterest income decreased by $242 thousand in Q3 2025 compared to Q3 2024, primarily due to a lack of significant gains from securities transactions [148]. - Total noninterest income for Q3 2025 was $4.7 million, a decrease from $4.9 million in Q3 2024, with financial services income down $77 thousand to $2.0 million [205]. - Total noninterest expenses for Q3 2025 were $26.2 million, unchanged from Q3 2024, with significant increases in salaries and employee benefits by $593 thousand [207]. Market Conditions and Strategy - The Federal Funds rate was lowered to a range of 4.00% to 4.25% in September 2025 and further to 3.75% to 4.00% in October 2025, impacting TrustCo's interest income dynamics [141]. - The average yield on the 10-year Treasury bond decreased by 10 basis points to 4.26% in Q3 2025 compared to Q2 2025, which is favorable for mortgage lenders like TrustCo [141]. - The company maintains a conservative approach to banking, focusing on traditional underwriting processes to mitigate credit risk [157]. - TrustCo's strategy includes growing customer relationships and expanding deposits and loans, with management evaluating conditions to optimize balance sheet growth [158]. - The company does not engage in derivatives, focusing instead on traditional banking activities to manage interest rate risk [230].

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]

Financial Data and Key Metrics Changes - TrustCo Bank reported a net income of $16.3 million for Q3 2025, 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 profitability and 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 year-over-year, with home equity loans increasing by 15.7% [10][14] - The residential real estate portfolio 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, with non-performing loans to total loans at 0.36%, down from 0.38% a year ago [9][17] 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 - TrustCo Bank aims to enhance shareholder value through a disciplined share repurchase program, having repurchased nearly half of the approved one million shares [7][9] - The company focuses on maintaining high-quality underwriting standards and conservative lending practices to manage credit risk effectively [10][16] - Expansion opportunities are being explored in Pasco County, Florida, and downstate New York, with a focus on strategic locations [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's long-term strength and the potential for meaningful net interest income upside due to maturing CDs [25][26] - The real estate market remains strong, contributing to recoveries and demand for loans, particularly in residential and home equity segments [28][14] - 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 [12][13] - Total non-interest expense was $26.2 million, slightly down from the prior year, indicating effective cost management [13] Q&A Session Summary Question: What is the average rate for maturing CDs compared to new CDs? - The average rate on the $1 billion in CDs coming due is about 3.75%, with the highest rate currently offered at 4% for a three-month term [25][26] Question: Can you explain the recoveries in New York? - The recoveries are largely due to a strong real estate market, with $194,000 in recoveries relating to approximately five properties taken back [28] Question: What are the company's expansion plans? - TrustCo is looking at opportunities in Pasco County, Florida, and other locations in downstate New York for potential growth [29][30]

Financial Data and Key Metrics Changes - TrustCo Bank reported a net income of $16.3 million for Q3 2025, representing a 26.3% increase compared to the same quarter last year [10] - Return on average assets increased to 1.03% and return on average equity grew by 20% [7] - Efficiency ratio improved by almost 9% year-over-year [7] - Consolidated equity to assets ratio was 10.9%, slightly down from 10.95% in 2024 [11] - Book value per share increased by 6% to $37.3 compared to $35.19 a year earlier [11] Business Line Data and Key Metrics Changes - Average loans grew by 2.5% or $125.9 million to $5.2 billion, marking an all-time high [12] - Home equity credit lines increased by $59.9 million or 15.7%, while residential real estate loans rose by $34 million or 0.8% [13] - Commercial loans also increased by $34.6 million or 12.4% [13] - Non-performing loans decreased to $18.5 million from $19.4 million a year ago, with a coverage ratio of over 280% [7][12] Market Data and Key Metrics Changes - Total deposits reached $5.5 billion, up $217 million compared to the prior year quarter [14] - Net interest income for Q3 2025 was $43.1 million, an increase of $4.4 million or 11.5% year-over-year [14] - Net interest margin improved to 2.79%, up 18 basis points from the prior year [14] - The yield on interest-earning assets increased to 4.25%, up 14 basis points from the prior year [14] Company Strategy and Development Direction - The company is focused on delivering high-quality loan and deposit products while maintaining strong underwriting standards [6] - TrustCo Bank has received approval to repurchase 1 million shares, with nearly half repurchased so far, indicating confidence in the stock's undervaluation [8][9] - The management emphasizes long-term shareholder value and plans to seek further stock repurchase approvals [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan growth driven by a strong local economy and increased demand for credit [13][19] - The bank remains committed to maintaining competitive deposit offerings while ensuring financial stability [15] - The management highlighted the importance of relationship banking and digital capabilities in retaining deposits [14] Other Important Information - The wealth management division had approximately $1.25 billion in assets under management, contributing significantly to non-interest income [15] - Total non-interest expense net of ORE expense was $26.2 million, down from the prior year quarter [16] Q&A Session Summary Question: Expectations for net interest income and CD rates - Management indicated the highest rate offered is 4% for a three-month CD, with $1 billion in CDs maturing over the next six months [27] - The average rate on the $1 billion coming due is approximately 3.75% [28] Question: Details on recoveries and property repossessions - Management noted that the $194,000 in recoveries for the quarter relates to about five properties, with a strong real estate market facilitating transactions before repossession [29] Question: Future branch expansion plans - Management is interested in expanding in Pasco County, Florida, and is also exploring opportunities in Downstate New York [30][31]

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% [7][8] - 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 [8] 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% [9][14] - The residential real estate portfolio increased by $34 million or 0.8%, while average commercial loans rose by $34.6 million or 12.4% [9] - Non-performing loans decreased to $18.5 million, with non-performing loans to total loans at 0.36%, down from 0.38% a year ago [8][17] Market Data and Key Metrics Changes - Total deposits reached $5.5 billion, up $217 million compared to the prior year, reflecting strong customer confidence [10] - The net interest margin for Q3 2025 was 2.79%, an increase of 18 basis points from the prior year [11] - The yield on interest-earning assets increased to 4.25%, while the cost of interest-bearing liabilities decreased to 1.9% [11] Company Strategy and Development Direction - The company aims to enhance shareholder value through disciplined share repurchase programs, having repurchased nearly half of the authorized one million shares [6][8] - TrustCo Bank focuses on maintaining high-quality underwriting standards and conservative lending practices to manage credit risk effectively [9][16] - The bank is exploring expansion opportunities in Pasco County, Florida, and other locations in downstate New York [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's long-term strength and highlighted the potential for meaningful net interest income upside due to maturing CDs [25] - The management noted that the real estate market remains strong, contributing to recoveries and overall loan demand [28] - The bank is well-positioned to continue delivering strong financial performance despite potential easing from the Federal Reserve [11] Other Important Information - The wealth management division had approximately $1.25 billion in assets under management, contributing significantly to non-interest income [11][12] - Total non-interest expense was $26.2 million, slightly down from the prior year, indicating effective cost management [12] 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 at an average rate of 3.75% [25][26] Question: Can you explain the recoveries in New York? - The recoveries were primarily due to a strong real estate market, with $194,000 relating to approximately five properties taken back [28] Question: What are the plans for branch expansion? - The company is considering expansion in Pasco County, Florida, and is looking for opportunities in downstate New York [29]

Financial Performance - Net income for Q3 2025 was $16.3 million, representing a 26.3% increase from $12.9 million in Q3 2024, with diluted earnings per share rising to $0.86 from $0.68[3] - Net income for Q3 2025 reached $16,258,000, up 26.3% compared to $12,875,000 in Q3 2024[13] - Basic net income per share increased to $0.87 in Q3 2025 from $0.68 in Q3 2024, reflecting a growth of 27.9%[19] - Net income for the nine months ended September 30, 2025, was $45,572,000, a significant increase of 21.4% from $37,552,000 in 2024[20] - Basic earnings per share improved to $2.41 for the nine months ended September 30, 2025, compared to $1.90 in the same period of 2024[21] Interest Income and Margin - Net interest income increased by 11.5% year-over-year to $43.1 million, driven by higher loan yields and effective deposit cost management[4] - Net interest income for Q3 2025 was $43,119,000, an increase of 10.3% from $38,671,000 in Q3 2024[13] - Net interest income for the nine months ended September 30, 2025, was $125,238,000, up from $113,037,000 in the same period of 2024, representing a growth of 10.4%[20] - Total interest income rose to $193,322,000, compared to $181,407,000 in the previous year, marking an increase of 6.3%[20] - The net interest margin expanded to 2.79%, up 18 basis points from 2.61% in Q3 2024, reflecting improved asset yields[6] - The net interest margin improved to 2.71% for the nine months ended September 30, 2025, compared to 2.52% in the prior year[30] Asset Quality - Nonperforming loans (NPLs) decreased to $18.5 million, or 0.36% of total loans, down from $19.4 million, or 0.38%, in the previous year[9] - Provision for credit losses decreased to $250,000 in Q3 2025 from $500,000 in Q3 2024, showing improved asset quality[13] - Nonperforming loans to total loans remained stable at 0.36% in Q3 2025, compared to 0.38% in Q3 2024[13] - Total nonperforming loans reached $18,477 thousand, up from $17,910 thousand in the prior quarter, indicating an increase of 3.2%[24] - The coverage ratio improved to 280.8% from 267.3% in the previous quarter, indicating stronger asset quality management[25] Shareholder Value - Book value per share increased to $37.30, a 6.0% rise from $35.19 a year earlier[8] - The book value per share at the end of Q3 2025 was $37.30, up from $35.19 at the end of Q3 2024[16] - TrustCo repurchased 467 thousand shares, or 2.5% of total outstanding shares, under its stock repurchase program, with an additional 533 thousand shares available for future repurchases[8] - The market price per share increased to $36.30 at the end of Q3 2025, compared to $33.07 at the end of Q3 2024[16] Efficiency and Cost Management - The efficiency ratio (GAAP) improved to 54.89% in Q3 2025 from 60.09% in Q3 2024, indicating better cost management[13] - The adjusted efficiency ratio improved to 55.98% for the nine months ended September 30, 2025, compared to 60.80% in the same period last year, indicating better expense control relative to revenue[35] Liquidity and Deposits - The bank's liquidity position remains strong, supporting future growth while managing evolving funding dynamics[6] - Average loans rose by $125.9 million, or 2.5%, while average deposits increased by $251.1 million, or 4.8%, compared to the same period in 2024[7] - Total deposits decreased to $5,481,273,000 from $5,490,314,000, a decline of 0.2%[22] - Demand deposits rose to $777,573 thousand, reflecting a strong liquidity position for the company[30]

Financial Results - TrustCo Bank Corp NY reported strong financial results for Q3 2025, with net interest income increasing by 11.5% year-over-year to $43.1 million, driven by higher loan yields and controlled deposit costs [3][5] - The net interest margin expanded to 2.79%, up from 2.61% in the prior year, reflecting improved asset yields and disciplined deposit pricing strategies [3][5] - Net income for Q3 2025 was $16.3 million, or $0.86 diluted earnings per share, a 26.3% increase compared to $12.9 million, or $0.68 diluted earnings per share in Q3 2024 [5][6] Loan and Deposit Growth - Total average loans increased by $125.9 million, or 2.5%, in Q3 2025 compared to the same period in 2024, with residential loans and home equity lines of credit (HECLs) rising by $34.0 million and $59.9 million, respectively [7] - Average deposits grew by $251.1 million, or 4.8%, primarily due to increases in time deposits and interest-bearing checking accounts [7] Capital Position and Stock Repurchase Program - TrustCo executed a stock repurchase program, acquiring 467 thousand shares, representing 2.5% of total shares outstanding, with an additional 533 thousand shares available for future repurchases [4][8] - The book value per share increased to $37.30 as of September 30, 2025, up from $35.19 a year earlier [5][8] Credit Quality - Nonperforming loans (NPLs) decreased to $18.5 million, or 0.36% of total loans, down from $19.4 million, or 0.38% a year earlier, indicating strong asset quality [5][9] - The allowance for credit losses on loans was $51.9 million, with a coverage ratio of 280.8% for NPLs as of September 30, 2025 [9][10] Performance Metrics - Return on Average Assets (ROAA) improved to 1.02%, up 21.4% from the previous year, while Return on Average Equity (ROAE) rose to 9.29%, an increase of 20.0% [5][6] - The efficiency ratio improved to 54.89%, down from 60.09% a year earlier, reflecting better operational efficiency [16]

Core Insights - TrustCo Bank Corp (NASDAQ: TRST) operates as the holding company for Trustco Bank, focusing primarily on the New York and Florida markets with nearly 140 offices [1] Company Overview - TrustCo Bank is recognized for its robust loan book, which is a significant strength for the institution [1] Investment Focus - The investment group European Small Cap Ideas specializes in high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income for consistent cash flow [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Core Points - TrustCo Bank Corp NY will release its third quarter 2025 results after market close on October 21, 2025 [1] - A conference call to discuss the results is scheduled for 9:00 a.m. Eastern Time on October 22, 2025 [1] - The company operates 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida, with total assets of $6.3 billion [3] Company Information - TrustCo Bank Corp NY is a savings and loan holding company, and its common shares are traded on NASDAQ under the symbol TRST [3] - The bank's Wealth Management Department provides a comprehensive range of investment services, retirement planning, and trust and estate administration services [3] - Additional information, including the earnings press release and annual reports, can be found on the company's Investor Relations website [2]