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].

Core Points - TrustCo Bank Corp NY declared a quarterly cash dividend of $0.36 per share, amounting to an annualized dividend of $1.44 per share, payable on April 1, 2025 [1] - The company has a long-standing tradition of delivering strong dividends since 1904, which reflects its steady corporate performance and commitment to meeting investors' financial goals [2] - TrustCo Bank Corp NY operates as a $6.2 billion savings and loan holding company with 136 offices across five states, providing a variety of deposit and loan products along with investment services [3]

Core Viewpoint - TrustCo Bank Corp NY has declared a quarterly cash dividend of $0.36 per share, reflecting its commitment to delivering consistent returns to shareholders [1][2]. Company Overview - TrustCo Bank Corp NY is a savings and loan holding company with total assets of $6.2 billion and operates 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida [3]. - The company has a long-standing tradition of providing high-quality financial services, including a variety of deposit and loan products, as well as investment services, retirement planning, and trust and estate administration [3]. - TrustCo Bank is recognized as one of the best-performing savings banks in the United States, with its common shares traded on the NASDAQ under the symbol TRST [3]. Dividend Declaration - The declared quarterly cash dividend of $0.36 per share translates to an annualized dividend of $1.44 per share, payable on April 1, 2024, to shareholders of record as of March 7, 2025 [1]. - The consistent dividend payments since 1904 highlight the company's strong corporate performance and commitment to shareholder satisfaction [2].

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 [3] - TrustCo has a long-standing tradition of providing high-quality services, including a variety of deposit and loan products, as well as investment services, retirement planning, and trust and estate administration [3] - TrustCo Bank is recognized as one of the best performing savings banks in the United States [3] Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.36 per share, which annualizes to $1.44 per share [1] - The dividend is scheduled to be payable on April 1, 2024, to shareholders of record as of the close of business on March 7, 2025 [1] Management Commentary - The Chairman, President, and CEO, Robert J. McCormick, expressed optimism for 2025, highlighting the company's consistent dividend payouts since 1904 [2] - The management emphasized that the reliable dividend and steady corporate performance contribute to investor satisfaction and financial goal achievement [2]

Financial Data and Key Metrics Changes - TrustCo Bank Corp reported significant changes in financial performance, with specific metrics to be detailed in the earnings press release [4] Business Line Data and Key Metrics Changes - The company will provide insights into various business lines and their respective performance metrics during the call [4] Market Data and Key Metrics Changes - Market performance data and key metrics will be discussed, highlighting the company's position in the market [4] Company Strategy and Development Direction and Industry Competition - The management will outline the company's strategic direction and competitive landscape within the banking industry [4] Management Comments on Operating Environment and Future Outlook - Management will share their views on the current operating environment and future prospects for TrustCo Bank Corp [4] Other Important Information - The call will include forward-looking statements and disclaimers regarding the potential risks and uncertainties that could affect actual results [2][3] Q&A Session All Questions and Answers Question: What are the expectations for future growth? - Management will address inquiries regarding growth expectations and strategic initiatives during the Q&A session [4]