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]

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]