Financial Data and Key Metrics Changes - TrustCo Bank reported a net income of $15.6 million for Q4 2025, representing a 38% increase compared to Q4 2024, with a return on average assets of 0.97% and average equity of 8.99% [5][7] - The consolidated equity to assets ratio was 10.66% for Q4 2025, down from 10.84% in Q4 2024 [7] - Book value per share increased by 7.1% to $38.08 from $35.56 a year earlier [8] Business Line Data and Key Metrics Changes - Average loans grew by 2.5%, or $126.8 million, reaching an all-time high of $5.2 billion [9] - Home equity lines of credit increased by $54.1 million, or 13.5%, while residential real estate portfolio grew by $50.6 million, or 1.2% [9][10] - Average commercial loans increased by $24.5 million, or 8.6%, while installment loans decreased by $2.4 million, or 17.3% [10] Market Data and Key Metrics Changes - Total deposits reached $5.6 billion, up $166 million compared to the prior year quarter, indicating strong customer confidence [10] - The bank's net interest income was $43.7 million for Q4 2025, an increase of 12.4% compared to the prior year quarter [11] - The net interest margin improved to 2.82%, up 22 basis points from the prior year quarter [11] Company Strategy and Development Direction - The company emphasized building solid customer relationships and maintaining low cost of funds, which contributed to margin expansion [4] - TrustCo Bank is committed to returning value to shareholders through a disciplined share repurchase program, having repurchased 533,000 shares in Q4 2025 [8] - The bank's strategy includes a focus on relationship banking and competitive product offerings to support ongoing loan growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's long-term strength and ability to manage credit risk effectively despite a modest increase in non-performing loans [9][18] - The bank remains well-positioned to deliver strong net interest income performance even with potential Federal Reserve rate changes [11] - Management is actively seeking new branch locations, particularly in Pasco County, Florida, to capture mortgage business as market dynamics shift [33] Other Important Information - Non-performing loans increased to $20.7 million, with a ratio of 0.39% of total loans, up from 0.37% a year ago [9][18] - Total non-interest expense for Q4 2025 was $26.5 million, down $1.5 million from the prior year quarter [12] Q&A Session Summary Question: Inquiry about asset quality and increase in New York commercial NPLs - Management indicated the increase was due to two relationships involving multi-family properties in Schenectady and Albany [23][24] Question: Clarification on collateral and guarantees for NPLs - Management confirmed that all loans in the portfolio are guaranteed, ensuring good collateral [25] Question: Inquiry about the increase in other expenses - Management explained that year-end expenses included funding for the TrustCo Foundation and other larger expenses [28] Question: Guidance for 2026 expenses - Management provided a range of expected recurring non-interest expenses for 2026, indicating no significant drivers for the increase [29][30] Question: Outlook on branch growth or declines - Management is actively looking for new locations in Pasco County, emphasizing the importance of entering at the right price [33]

TrustCo Bank NY (NasdaqGS:TRST) Q4 2025 Earnings call January 22, 2026 09:00 AM ET Speaker2Good day. Welcome to the TrustCo Bank Corp NY fourth quarter earnings call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero on your keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. To withdraw your ques ...

Financial Performance - TrustCo reported a net income of $61.1 million for the year 2025, with a total shareholder return that was three times that of peers[1]. - Q4 2025 net income was $15.6 million, a 38.0% increase from $11.3 million in Q4 2024, with diluted earnings per share rising to $0.85 from $0.59[3]. - Net income for the year ended December 31, 2025, was $61,137, representing a 25.2% increase from $48,833 in 2024[14]. - Basic net income per common share increased to $3.26 in 2025 from $2.57 in 2024, a rise of 26.9%[19]. Interest Income and Margin - For Q4 2025, net interest income increased by 12.4% year-over-year to $43.7 million, driven by asset repricing and effective interest expense management[2]. - The net interest margin for Q4 2025 expanded to 2.82%, up 22 basis points from 2.60% in Q4 2024[3]. - Total interest income rose to $259,416,000 in 2025, compared to $243,316,000 in 2024, marking an increase of 6.6%[18]. - Net interest income after provision for credit losses was $167,373,000, up from $149,939,000, reflecting a growth of 11.6%[18]. Asset and Deposit Growth - Average loans increased by $126.8 million, or 2.5%, in Q4 2025 compared to the same period in 2024, reflecting strong borrower confidence[6]. - Average deposits rose by $208.0 million, or 3.9%, in Q4 2025, primarily due to increases in time deposits and interest-bearing accounts[6]. - Total assets reached $6,440,700,000 as of December 31, 2025, an increase from $6,238,744,000 in 2024, indicating a growth of 3.2%[20]. - Total deposits increased to $5,557,417,000 in 2025, compared to $5,490,314,000 in 2024, showing a growth of 1.2%[20]. Noninterest Income and Expenses - Noninterest income for Q4 2025 was $4,430, slightly up from $4,409 in Q4 2024[12]. - Total noninterest expenses for Q4 2025 decreased to $26,710 from $28,165 in Q4 2024, a reduction of 5.2%[12]. - Noninterest income decreased to $18,945,000 in 2025 from $19,834,000 in 2024, a decline of 4.5%[18]. - Total noninterest expenses slightly decreased to $105,504,000 in 2025 from $105,727,000 in 2024, a reduction of 0.2%[18]. Credit Quality and Provisions - The allowance for credit losses on loans was $52.2 million as of December 31, 2025, with a ratio of 0.99% to total loans, indicating stable asset quality[8]. - Nonperforming loans (NPLs) increased to $20.7 million, or 0.39% of total loans, as of December 31, 2025, reflecting a modest rise in credit risk[8]. - The provision for credit losses for the year ended December 31, 2025, was $1,600, down from $2,000 in 2024[14]. - The coverage ratio improved to 252.5% from 280.8% in the previous quarter, reflecting a decrease in the ability to cover nonperforming loans[23]. Shareholder Equity and Stock Performance - TrustCo repurchased 1 million shares, or 5.3%, of its common stock in 2025, with an additional 2 million shares authorized for repurchase in 2026[7]. - TrustCo's book value per share increased to $38.08 as of December 31, 2025, up 7.1% from $35.56 a year earlier[7]. - The market price per share at the end of Q4 2025 was $41.33, compared to $33.31 at the end of Q4 2024[12]. - Total shareholders' equity as of December 31, 2025, was $686,589,000, a slight decrease from $692,013,000 in 2024[21].

Executive Snapshot: Financial results: Key metrics for the fourth quarter 2025 compared to the fourth quarter of 2024: Net income of $15.6 million increased 38.0% compared to $11.3 millionDiluted earnings per share of $0.85 increased 44.1% compared to $0.59Net interest margin of 2.82%, up 22 basis points from 2.60%Return on Average Assets of 0.97%, up 32.9% from 0.73%Return on Average Equity of 8.99%, up 34.2% from 6.70%Net interest income of $43.7 million, up 12.4% from $38.9 million Capital position and ...

GLENVILLE, N.Y., Jan. 12, 2026 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that it will release fourth quarter 2025 results after the market close on January 21, 2026. Results are released on the 21st of the reporting months (January, April, July and October), or on the next day that equity markets are open if the 21st falls on a Friday, weekend or holiday. A conference call to discuss the results will be held at 9:00 a.m. Eastern Time on January 22, 2026. Those wishing ...

Core Viewpoint - TrustCo Bank Corp NY has announced a new stock repurchase program allowing the repurchase of up to 2,000,000 shares, approximately 11% of its outstanding shares, aimed at increasing shareholder value [1][2]. Group 1: Stock Repurchase Program - The new stock repurchase program permits shares to be repurchased in open market or private transactions, including block trades, in accordance with SEC Rule 10b5-1 [1]. - The company recently completed a previous repurchase program of one million shares earlier in December 2025 [1]. - Repurchases will be made at management's discretion over the next twelve months, considering factors such as stock availability, market conditions, and TrustCo's financial performance [2]. Group 2: Company Background - TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company operating 135 offices across New York, New Jersey, Vermont, Massachusetts, and Florida [4]. - The company has a tradition of over 100 years in providing high-quality services, including a variety of deposit and loan products, as well as investment services through its Wealth Management Department [4]. - TrustCo Bank is recognized as one of the best performing savings banks in the country [4].

Core Points - TrustCo Bank Corp NY declared a quarterly cash dividend of $0.38 per share, amounting to an annualized dividend of $1.52 per share, payable on January 2, 2026, to shareholders of record as of December 5, 2025 [1] - The company emphasizes its commitment to returning capital to shareholders, which is a fundamental aspect of its operations and aims to enhance shareholder value while maintaining strong relationships with customers [2] - TrustCo Bank Corp NY operates as a $6.3 billion savings and loan holding company with 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida, offering a range of financial services [3]

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]