GLENVILLE, N.Y., July 10, 2025 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that it will release second quarter 2025 results after the market close on July 21, 2025. 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 July 22, 2025. Those wishing to par ...

Core Viewpoint - TrustCo Bank Corp NY has declared a quarterly cash dividend of $0.36 per share, reflecting the company's strong financial performance in the first quarter of 2025 [1][2]. Company Overview - TrustCo Bank Corp NY is a savings and loan holding company with total assets of $6.3 billion, operating 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida [2]. - The company has a history of uninterrupted dividend payments since 1904, indicating a strong commitment to returning value to shareholders [2]. - TrustCo Bank is recognized as one of the best-performing savings banks in the United States, offering a variety of deposit and loan products, as well as investment services and retirement planning [2]. Dividend Details - The declared dividend of $0.36 per share will be payable on July 1, 2025, to shareholders of record as of June 6, 2025, which translates to an annualized dividend of $1.44 per share [1][2].

Financial Performance - TrustCo recorded net income of $14.3 million, or $0.75 of diluted earnings per share, for Q1 2025, compared to $12.1 million, or $0.64 per share, in Q1 2024, representing a 18.2% increase in net income [134]. - The return on average assets improved to 0.93% in Q1 2025 from 0.80% in Q1 2024, while return on average equity increased to 8.49% from 7.54% [134]. - Net interest income rose by $3.8 million to $40.4 million in Q1 2025, with the net interest margin up 20 basis points to 2.64% [165]. - Total noninterest income for the first quarter of 2025 was $5.0 million, an increase from $4.8 million in the same period of 2024, driven by a $304 thousand increase in Trustco financial services income [188]. - Total noninterest expenses for the first quarter of 2025 were $26.3 million, a 5.7% increase from $24.9 million in the first quarter of 2024 [190]. - TrustCo declared a dividend of $0.36 per share in the first quarter of 2025, resulting in a dividend payout ratio of 47.97% based on first quarter 2025 earnings of $14.3 million [193]. Asset and Liability Management - Total average interest earning assets rose from $5.99 billion in Q1 2024 to $6.11 billion in Q1 2025, with an average yield of 4.13% [146]. - The average loan portfolio grew by $104.7 million to $5.11 billion, with the average yield on loans increasing by 21 basis points to 4.19% [148]. - The average balance of interest bearing liabilities increased by $57.7 million, while the average rate paid decreased by 7 basis points to 1.92% [147]. - Total average interest-bearing deposits increased by $67.8 million to $4.65 billion in Q1 2025, with the average rate paid decreasing from 2.02% to 1.94% [161]. - The average balance of Federal Funds sold and other short-term investments increased by $116.0 million to $613.6 million in Q1 2025, but the yield decreased to 4.45% [158]. - TrustCo's total liabilities and shareholders' equity reached $6.3 billion in Q1 2025, up from $6.1 billion in Q1 2024, reflecting a growth of approximately 2.0% [205]. Loan and Credit Quality - Nonperforming loans totaled $18.8 million as of March 31, 2025, with a significant portion being residential real estate loans [167]. - The provision for credit losses recorded in Q1 2025 was $300 thousand, driven by loan growth and an increase in unfunded loan commitments [178]. - As of March 31, 2025, the allowance for credit losses on loans was $50.6 million, up from $50.2 million as of December 31, 2024, representing 0.99% of the loan portfolio [180]. - Net recoveries for the three-month period ended March 31, 2025, were $258 thousand, compared to $42 thousand for the prior year period [181]. - The allowance for credit losses on loans was $50.5 million in Q1 2025, slightly up from $48.8 million in Q1 2024, reflecting a cautious approach to credit risk management [205]. Market and Economic Conditions - Economic uncertainty persists with a modest increase in unemployment to 4.2%, and economists are evaluating the possibility of a recession in the second half of 2025 [131]. - The Federal Funds rate remained flat at a range of 5.25% to 5.50% as of March 31, 2025 [139]. Capital and Shareholder Information - As of March 31, 2025, total shareholders' equity was $687.8 million, compared to $676.3 million as of December 31, 2024 [193]. - The capital ratios as of March 31, 2025, included a Tier 1 leverage ratio of 10.533%, a common equity tier 1 capital ratio of 18.660%, and a total risk-based capital ratio of 19.913% [195]. - TrustCo's consolidated equity to total assets ratio was 10.85% as of March 31, 2025, compared to 10.84% at December 31, 2024 [195]. - The Company announced a share repurchase program of up to 1,000,000 shares, approximately 5% of its currently outstanding common stock [199]. Investment and Securities - The average balance of securities available for sale decreased to $369.9 million in Q1 2025 from $477.4 million in Q1 2024, while the average yield increased to 2.62% [153]. - Total securities available for sale decreased to $369.9 million in Q1 2025 from $477.4 million in Q1 2024, a decline of 22.5% [205]. - TrustCo does not engage in derivatives, focusing instead on traditional investment strategies to manage interest rate risk [207].

Financial Data and Key Metrics Changes - The company reported a net income of $14.3 million for Q1 2025, an increase of 17.7% compared to the same quarter last year [13] - Return on average assets and return on average equity were 0.93% and 8.49%, respectively, both up 27% year-over-year [8] - Consolidated equity to assets ratio was 10.85%, up 3% year-over-year, and shareholders' equity increased by 6% year-over-year [9][14] - Net interest income for Q1 2025 was $40.4 million, a 10.4% increase from the prior year [18] Business Line Data and Key Metrics Changes - Total loans increased by $104.7 million or 2.1% year-over-year, reaching an all-time high of $5.1 billion [15] - Home equity lines of credit grew by $61 million or 17.3%, while residential real estate loans increased by $26.2 million [16][24] - Commercial loans rose by $20.7 million or 7.5% compared to the same period in 2024 [16][24] Market Data and Key Metrics Changes - Total deposits reached $5.5 billion, up $142 million compared to the prior year [17] - The yield on interest-earning assets increased to 4.13%, while the cost of interest-bearing liabilities decreased to 1.92% [18] Company Strategy and Development Direction - The company is focusing on relationship banking and solid financial practices to navigate a complex economic environment [18] - A stock repurchase program of up to 1 million shares was announced, representing approximately 5% of current outstanding shares, aimed at enhancing shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management noted a strong local economy, particularly in the Capital District and Central Florida, which supports their lending activities [35][36] - The expectation for residential home prices is stable, with no significant increases anticipated [38] - The bank is preparing for potential interest rate reductions in 2025, which may provide opportunities to manage deposit costs effectively [19] Other Important Information - Non-performing loans remained flat at 0.37%, indicating strong asset quality [9][28] - Wealth Management division had approximately $1.1 billion in assets under management, with non-interest income increasing by 16.7% [20] Q&A Session Summary Question: Is the strong local economy specific to the Capital region or all markets? - Management indicated stability in strong markets, particularly in the Capital District and Central Florida, which are less affected by economic fluctuations [35][36] Question: What are the trends in residential home prices? - Management stated that home prices are stable, with no significant increases expected [38] Question: What changed regarding the share repurchase plan compared to last year? - Management noted that the 5% repurchase plan reflects a more favorable tone towards share repurchases this year, with an intent to fully execute [40] Question: What target capital ratio is being contemplated? - Management did not specify a target capital ratio but indicated room for additional repurchases while maintaining a strong capital position [42]

Financial Data and Key Metrics Changes - The company reported a net income of $14.3 million for the first quarter of 2025, an increase of 17.7% compared to the prior year quarter [13] - Return on average assets and return on average equity were 0.93% and 8.49%, respectively, both up 27% year-over-year [8] - Consolidated equity to assets ratio was 10.85%, up 3% year-over-year, and shareholders' equity increased by 6% year-over-year [9][14] - Net interest income for the first quarter of 2025 was $40.4 million, an increase of $3.8 million or 10.4% compared to the prior year quarter [18] Business Line Data and Key Metrics Changes - Total loans increased by $104.7 million or 2.1% year-over-year, reaching an all-time high of $5.1 billion [15] - Home equity lines of credit increased by $61 million or 17.3%, while residential real estate portfolio grew by $26.2 million [16][24] - Commercial loans increased by $20.7 million or 7.5% over the same period [16][24] - Non-performing loans remained flat at 0.37%, indicating strong asset quality [28] Market Data and Key Metrics Changes - Total deposits ended the quarter at $5.5 billion, up $142 million compared to the prior year quarter [17] - The company noted strong customer confidence in its competitive deposit offerings, particularly in time deposits [17] Company Strategy and Development Direction - The company is focused on relationship banking and solid financial practices to navigate a complex economic environment [18] - A stock repurchase program of up to 1 million shares was announced, representing approximately 5% of current outstanding shares, aimed at enhancing shareholder value [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the local economy, particularly in the Capital District and Central Florida, which are described as stable and strong [35][36] - The company anticipates that a lower interest rate environment may provide opportunities to manage deposit costs more effectively [19] Other Important Information - The Wealth Management division had approximately $1.1 billion of assets under management, with non-interest income from this segment increasing by 16.7% [20] - Total non-interest expense was $26.3 million, up $1.4 million from the prior year quarter, primarily due to higher salary and employee benefits [22] Q&A Session Summary Question: Is the strong local economy referenced in the press release specific to the Capital region or all markets? - Management indicated that the Capital District has a stable economy with less volatility, and Central Florida remains strong as well [35][36] Question: What are the trends in residential home prices? - Management noted that home prices are stable but not increasing, with no significant drops expected [38] Question: What changed regarding the share repurchase plan compared to last year? - Management explained that the larger 5% repurchase plan reflects a more favorable tone towards share repurchases this year, with an intent to fully execute [40] Question: What target capital ratio is the company contemplating? - Management did not specify a target capital ratio but indicated that there is room for additional repurchases while maintaining a strong capital position [42]

Financial Performance - TrustCo reported a net income of $14.3 million for Q1 2025, a 17.7% increase from $12.1 million in Q1 2024, translating to $0.75 diluted earnings per share compared to $0.64[3]. - Net income for Q1 2025 was $14,275,000, representing a 26.56% increase from $11,281,000 in Q4 2024 and a 17.79% increase from $12,126,000 in Q1 2024[15]. - Basic and diluted net income per share rose to $0.75 in Q1 2025, compared to $0.59 in Q4 2024 and $0.64 in Q1 2024, marking a 27.12% increase from the previous quarter[15]. - Noninterest income for Q1 2025 was $4,974,000, an increase of 12.83% from $4,409,000 in Q4 2024 and a slight increase from $4,843,000 in Q1 2024[15]. - Total noninterest expenses decreased to $26,329,000 in Q1 2025, down 6.53% from $28,165,000 in Q4 2024 and up 5.70% from $24,903,000 in Q1 2024[15]. - The efficiency ratio improved to 58.06% in Q1 2025, compared to 65.03% in Q4 2024 and 59.94% in Q1 2024[13]. - Return on average assets increased to 0.93% in Q1 2025, up from 0.73% in Q4 2024 and 0.80% in Q1 2024[13]. - Return on average equity improved to 8.49% in Q1 2025, compared to 6.70% in Q4 2024 and 7.54% in Q1 2024[13]. Asset and Liability Management - Total assets increased to $6,338,545 thousand as of March 31, 2025, up from $6,238,744 thousand at December 31, 2024, representing a growth of 1.6%[17]. - Total deposits rose to $5,496,670 thousand, compared to $5,390,983 thousand at the end of the last quarter, reflecting an increase of 2.0%[17]. - The company reported a total of 5,496,670 thousand in total liabilities, up from 5,390,983 thousand, reflecting an increase of 2.0%[17]. - Shareholders' equity increased to $687,808 thousand from $676,343 thousand, marking a growth of 1.9%[17]. - Cash and cash equivalents totaled $756,137 thousand, an increase from $641,812 thousand, reflecting a growth of 17.8%[17]. Loan and Credit Quality - Average loans increased by $104.7 million, or 2.1%, in Q1 2025 compared to Q1 2024, with residential loans up $26.2 million (0.6%) and HECLs up $61.0 million (17.3%)[5]. - Non-performing loans (NPLs) remained stable at 0.37% of total loans, with NPLs totaling $18.8 million as of March 31, 2025, compared to $18.3 million a year prior[9]. - The company recorded a provision for credit losses of $300 thousand in Q1 2025, with an allowance for credit losses on loans at $50.6 million, representing 0.99% of total loans[9]. - The allowance for credit losses on loans was $50,606 thousand, slightly up from $50,248 thousand in the previous quarter, showing a 0.7% increase[17]. - Total nonperforming assets increased to $20,867,000 as of March 31, 2025, compared to $20,975,000 at December 31, 2024, reflecting a decrease of 0.52%[19]. - Total non-accrual loans amounted to $18,760,000, showing a slight decrease from $18,800,000 in the previous quarter[19]. - The coverage ratio for credit losses was reported at 269.8%, reflecting strong capital reserves relative to potential losses[20]. Capital Management - TrustCo announced a stock repurchase program for up to one million shares, approximately 5% of its outstanding common stock, as part of its capital management strategy[6]. - The equity to asset ratio improved to 10.85% as of March 31, 2025, from 10.51% a year earlier, with book value per share rising to $36.16, a 6.0% increase[6]. - Tangible book value per share increased to $36.13 as of March 31, 2025, up from $35.53 at December 31, 2024, and $34.10 at March 31, 2024[28]. - Tangible equity (Non-GAAP) increased to $687,255,000 as of March 31, 2025, from $675,790,000 at December 31, 2024, and $648,637,000 at March 31, 2024[28]. Interest Income and Margin - Net interest income for Q1 2025 was $40.4 million, up 10.4% from $36.6 million in Q1 2024, with a net interest margin of 2.64%, an increase of 20 basis points year-over-year[7]. - Net interest income for Q1 2025 increased to $40,373,000, up 3.99% from $38,902,000 in Q4 2024 and up 10.00% from $36,578,000 in Q1 2024[28]. - The net interest margin improved to 2.64% for the three months ended March 31, 2025, compared to 2.44% for the same period in 2024[22]. - Total interest-earning assets reached $6,105,834,000, generating net interest income of $40,372,000[22]. - Commercial loans generated an interest income of $4,165,000, with an average interest rate of 5.59%[22]. Future Outlook - TrustCo anticipates continued positive performance based on Q1 results and its strategic focus on relationship banking and solid financial practices[4].

Executive Summary - TrustCo Bank Corp NY reported a strong start to 2025, with significant growth in loan and deposit portfolios compared to Q1 2024, resulting in a net income of $14.3 million or $0.75 diluted earnings per share, up from $12.1 million or $0.64 diluted earnings per share in the same period last year [2][3][5]. Financial Performance - Average loans increased by $104.7 million or 2.1% year-over-year, with residential loans up $26.2 million (0.6%) and home equity lines of credit (HECLs) up $61.0 million (17.3%) [4][5]. - Average deposits rose by $103.3 million or 1.9%, driven by increases in time deposits, interest-bearing checking accounts, and demand deposits [4][5]. - Net interest income for Q1 2025 was $40.4 million, a 10.4% increase from $36.6 million in Q1 2024, supported by loan growth at higher interest rates [5][8]. - Non-interest income increased to $5.0 million, primarily due to a 16.7% rise in wealth management and financial services fees [9]. Capital Position - The consolidated equity to assets ratio improved to 10.85% as of March 31, 2025, compared to 10.51% a year earlier [5][7]. - Book value per share increased to $36.16, up from $34.12 in the previous year [7][12]. - A stock repurchase program was announced, authorizing the buyback of up to one million shares, approximately 5% of the current outstanding common stock [7][12]. Asset Quality - Credit quality remained strong, with non-performing loans (NPLs) steady at 0.37% of total loans, and the allowance for credit losses on loans was $50.6 million [10][24]. - The coverage ratio for allowance for credit losses on loans to NPLs was 269.8% as of March 31, 2025, indicating strong asset quality management [10][24]. Market Position - TrustCo Bank operates 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida, with total assets of $6.3 billion as of March 31, 2025 [12][19]. - The bank's strategic focus on relationship banking and solid financial practices is expected to support continued success despite a complex economic environment [6].

Company Overview - TrustCo Bank Corp NY is a savings and loan holding company with a total asset value of $6.2 billion [3] - The company operates 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida through its subsidiary, Trustco Bank [3] - TrustCo's Wealth Management Department provides a comprehensive range of investment services, retirement planning, and trust and estate administration services [3] Upcoming Financial Results - TrustCo will release its first quarter 2025 results after the market close on April 21, 2025 [1] - A conference call to discuss the results is scheduled for 9:00 a.m. Eastern Time on April 22, 2025, with dial-in numbers provided for participants in the U.S. and Canada [1][2] - The earnings press release will be available on the company's Investor Relations website [2]

Core Viewpoint - TrustCo Bank Corp NY has announced a stock repurchase program allowing the company to buy back up to 1,000,000 shares, representing approximately 5% of its outstanding shares, as a strategic move to enhance shareholder value [1][2]. Summary by Sections Stock Repurchase Program - The Board of Directors has approved a stock repurchase program for up to 1,000,000 shares, or about 5% of the current outstanding shares [1]. - The repurchase can occur through open market or private transactions, block trades, or trading plans compliant with SEC Rule 10b5-1 [1]. Management's Perspective - CEO Robert J. McCormick expressed confidence that the repurchase program is a strategic capital deployment, indicating that the stock is undervalued relative to the company's business strength [2]. - Repurchases will be conducted at management's discretion over the next twelve months, considering factors such as stock availability, market conditions, and TrustCo's financial performance [2]. Program Flexibility - The repurchase program can be suspended, terminated, or modified at any time based on market conditions, repurchase costs, and other investment opportunities [3]. - There is no obligation for TrustCo to repurchase a specific number of shares [3]. Company Overview - TrustCo Bank Corp NY is a $6.2 billion savings and loan holding company operating 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida [4]. - The company has a long-standing tradition of providing high-quality banking services, including a variety of deposit and loan products, as well as wealth management services [4].

Employee and Shareholder Information - TrustCo Bank Corp NY had 737 full-time equivalent employees and 6,961 shareholders of record as of December 31, 2024, with a closing stock price of $33.31[17]. - The company had 791 employees as of December 31, 2024, with 69.5% working at bank branches[126]. - Approximately 19% of employees were promoted within the bank during 2024, indicating a focus on internal talent development[127]. - The company retained 85% of employees receiving officer equity awards, demonstrating effective employee retention strategies[133]. - The company participated in over 25,000 hours of training for employees, emphasizing its commitment to employee development[129]. Financial Performance and Capital Management - The aggregate market value of assets under trust, custody, or management of the trust department was approximately $1.15 billion as of December 31, 2024[21]. - TrustCo's investment policy aims to maintain liquidity, mitigate interest rate risk, and generate reasonable returns, with the majority of securities classified as available-for-sale[33]. - Major sources of funds for lending and investment include deposits, borrowings, and loan repayments, influenced by general interest rates and market conditions[34]. - The Company had a Tier 1 leverage ratio of 11.05% and a CET1 capital ratio of 19.30% as of December 31, 2024[48]. - TrustCo and Trustco Bank met all capital adequacy requirements as of December 31, 2024, with the Bank categorized as "well capitalized" under regulatory standards[59]. - The capital conservation buffer requires CET1 capital to exceed 2.5% above the minimum risk-weighted asset ratios, resulting in a CET1 to risk-weighted assets requirement of more than 7.0%[49]. - The capital rules require the Company to maintain a total capital ratio of more than 10.5% to avoid constraints on dividends and equity repurchases[49]. - Regulatory capital requirements may slow growth and necessitate raising additional capital, potentially leading to restrictions on dividends and share repurchases if compliance is not maintained[186]. - The company anticipates remaining well-capitalized according to regulatory standards, which is crucial for maintaining operational flexibility[187]. Regulatory Compliance and Risks - Regulatory capital requirements imposed by the Federal Reserve Board, OCC, and FDIC govern TrustCo and the Bank's operations, affecting capital distributions and dividends[45]. - Compliance with regulatory standards may limit the amount of dividends TrustCo can pay to its shareholders[44]. - The Dodd-Frank Act has led to increased operating costs for the Company due to new capital requirements and regulatory compliance[67]. - The Sarbanes-Oxley Act of 2002 has prompted the Company to implement policies and procedures to enhance corporate responsibility and compliance with federal regulations[68]. - The Bank is required to notify its primary regulator within 36 hours of a significant computer-security incident, as mandated by new federal rules[106]. - The Bank must maintain an anti-money laundering program and is subject to proposed amendments to update AML and counter-terrorism financing requirements[100]. - The company is subject to extensive enforcement authority from the Federal Reserve Board and the OCC, which includes the ability to assess civil money penalties and issue cease-and-desist orders[92]. - Changes in laws and regulations, including those related to consumer protection and fair lending, could impose additional compliance costs and operational restrictions[188]. Market and Competitive Environment - TrustCo's principal competitors include local branch operations of super-regional banks and nationally franchised real estate brokers, with competition for deposits and loans expected to increase due to regulatory and technological changes[26][27]. - The company emphasizes a community-based financial organization approach to establish personalized financial relationships, contributing to its competitiveness[27]. - Intense competition in the banking sector may pressure profit margins and hinder growth, as competitors may have greater resources and more favorable pricing[203]. - The rise of non-bank financial transaction methods could lead to a loss of fee income and customer deposits, adversely affecting the company's financial condition[205]. Loan Portfolio and Credit Risk - As of December 31, 2024, consumer residential real estate loans represented approximately 94.1% of the total loan portfolio[146]. - The commercial loan portfolio is increasing, which may lead to additional provisions for credit losses or charge-offs[147]. - The company is exposed to credit risk in its lending activities, with loans to individuals and business entities being the single largest asset group[145]. - A significant portion of the allowance for credit losses on loans (ACLL) is determined using qualitative factors, which involves subjective judgment[153]. - The company has a concentration of loans secured in New York and Florida, with approximately 62.3% and 34.8% of its loan portfolio respectively, making it vulnerable to local economic downturns[177]. Economic and Market Conditions - The annual inflation rate in the United States decreased to 2.9% in December 2024 from a high of 9.1% in June 2022[144]. - The inflation rate in the U.S. peaked at 9.1% in June 2022, and persistent inflation could lead to tighter monetary policy, increasing borrowing costs for customers and impacting their ability to repay loans[180]. - Recent downgrades of the U.S. long-term sovereign credit rating from AAA to AA+ by Fitch Ratings could materially adversely affect financial markets and the company's operations[181]. - The company faces risks from external events such as geopolitical instability and economic downturns, which could lead to increased delinquencies and loan losses[178]. Cybersecurity and Operational Risks - Cybersecurity risks include potential financial losses and reputational damage due to unauthorized access to sensitive customer information[207]. - The company has not experienced material losses from cyberattacks to date, but the evolving nature of cyber threats increases future risk exposure[207]. - Operational risks arise from reliance on third-party systems, which may lead to significant disruptions and impact financial condition[212]. - Unauthorized disclosure of sensitive customer information could result in severe reputational harm and regulatory liabilities[213]. - The company relies heavily on third-party service providers for communications, information, and operational systems, which poses risks of operational disruption and security breaches[206]. Climate-Related Risks - The company has identified credit, market, liquidity, and operational factors as climate-related risks that could impact loan repayment and overall financial performance[122]. - The company is exposed to climate risks that may increase operational costs and damage facilities, particularly those located near coastal areas[167]. - The company has less than $10 billion in total assets, meaning it is not subject to certain climate-related financial risk management principles issued by federal banking agencies[123]. Business Strategy and Development - The company has implemented a program to provide financial products and services to legal cannabis-related businesses following the legalization of recreational marijuana in New York[114]. - The company follows FinCEN guidelines for servicing state-legal cannabis businesses, ensuring compliance with regulatory requirements[116]. - The company has a comprehensive compensation strategy that includes competitive salaries, bonuses, and various employee benefits to support overall well-being[132]. - The company’s new lines of business or products may introduce additional risks, particularly in underdeveloped markets, impacting profitability targets[166].