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]

Financial Performance - Fourth quarter 2024 net income was $11.3 million, up from $9.8 million in the fourth quarter 2023, with diluted earnings per share increasing to $0.59 from $0.52[1] - Full year 2024 net income totaled $48.8 million, down from $58.6 million in 2023, resulting in diluted earnings per share of $2.57 compared to $3.08[1] - Net income for the year ended December 31, 2024, was $48,833, down 16.7% from $58,646 in 2023[12] - Noninterest income for Q4 2024 was $4,409, slightly down from $4,474 in Q4 2023, a decrease of 1.45%[10] - Net interest income for the year ended December 31, 2024, was $151,939 thousand compared to $171,845 thousand for the year ended December 31, 2023[25] Asset and Loan Growth - Average loans increased by $104.9 million, or 2.1%, in the fourth quarter 2024 compared to the same period in 2023[3] - Total assets increased to $6,238,744 thousand as of 12/31/2024, up from $6,168,191 thousand a year earlier, representing a growth of approximately 1.14%[18] - Net loans reached $5,047,810 thousand, showing an increase from $4,954,301 thousand year-over-year, which is a growth of about 1.88%[18] - Total deposits rose to $5,390,983 thousand, compared to $5,350,777 thousand in the previous year, reflecting an increase of approximately 0.75%[18] - Commercial loans increased to $286,857 thousand, compared to $273,515 thousand a year earlier, reflecting a growth of approximately 4.91%[18] Interest Income and Margin - Net interest income for Q4 2024 was $38.9 million, a slight increase of $296 thousand, or 0.8%, from the fourth quarter 2023[4] - The net interest margin decreased to 2.15% in the fourth quarter 2024, down 6 basis points from 2.21% in the fourth quarter 2023[4] - The net interest margin for Q4 2024 was 2.60%, consistent with Q4 2023, indicating stable interest income relative to earning assets[10] - Net interest spread decreased to 2.10% from 2.64% year-over-year[26] - Net interest margin decreased to 2.54% from 2.91% year-over-year[26] Efficiency and Expenses - The efficiency ratio for Q4 2024 was 65.03%, up from 60.09% in Q3 2024, indicating a decline in operational efficiency[10] - Total noninterest expenses for the year ended December 31, 2024, were $105,727, a decrease from $111,297 in 2023, reflecting a reduction of 5.1%[12] - Adjusted efficiency ratio for the three months ended 12/31/2024 was 63.93%, up from 59.65% on 9/30/2024 and 60.16% on 12/31/2023[32] Equity and Book Value - Book value per share increased by 4.8% to $35.56 as of December 31, 2024, up from $33.92[6] - The equity to asset ratio improved to 10.84% as of December 31, 2024, compared to 10.46% at the end of 2023[6] - Tangible book value per share increased to $35.53 as of 12/31/2024, up from $35.16 on 9/30/2024 and $33.89 on 12/31/2023[32] Credit Quality - The ratio of allowance for credit losses on loans to total loans was 0.99% as of December 31, 2024, compared to 0.97% a year earlier[5] - The provision for credit losses increased to $2,000 for the year ended December 31, 2024, compared to $1,250 in 2023, indicating a rise of 60%[12] - Total nonperforming assets increased to $20,975,000 as of December 31, 2024, compared to $17,860,000 on December 31, 2023, reflecting a year-over-year increase of 17.5%[20] - Total nonperforming loans reached $18,800,000, up from $17,666,000 a year earlier, indicating a rise of 6.4%[21] - Nonperforming assets to total assets ratio was 0.34% as of December 31, 2024, compared to 0.29% a year earlier[21]

Executive Summary - TrustCo Bank Corp NY reported a fourth quarter 2024 net income of $11.3 million, an increase from $9.8 million in the same quarter of 2023, with diluted earnings per share rising to $0.59 from $0.52 [3][6] - For the full year 2024, net income was $48.8 million, down from $58.6 million in 2023, with diluted earnings per share decreasing to $2.57 from $3.08 [3][17] - Average loans increased by $104.9 million, or 2.1%, in the fourth quarter of 2024 compared to the same period in 2023, driven by growth in home equity lines of credit [5][6] Financial Performance - Net interest income for the fourth quarter of 2024 was $38.9 million, a slight increase from $38.6 million in the fourth quarter of 2023 [6][7] - The return on average assets (ROAA) improved to 0.73% from 0.64% year-over-year, while the return on average equity (ROAE) increased to 6.70% from 6.21% [6][15] - The consolidated equity to assets ratio rose to 10.84% as of December 31, 2024, compared to 10.46% a year earlier [9][15] Loan and Deposit Growth - Average residential loans increased by $34.9 million, or 0.8%, and home equity lines of credit rose by $61.0 million, or 17.9%, in the fourth quarter of 2024 compared to the same period in 2023 [5][6] - Average deposits grew by $31.7 million, or 0.6%, primarily due to an increase in time deposits, reflecting customer preference for the safety of TrustCo's banking services [5][6] Asset Quality - The company recorded a provision for credit losses of $400 thousand in the fourth quarter of 2024, with the allowance for credit losses on loans to total loans ratio at 0.99% [8][15] - Nonperforming loans (NPLs) were $18.8 million, representing 0.37% of total loans, compared to $17.7 million or 0.35% a year earlier [8][15] Market Position - TrustCo Bank Corp NY operates as a $6.2 billion savings and loan holding company with 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida as of December 31, 2024 [11][23] - The bank's wealth management department offers a comprehensive range of investment services, retirement planning, and trust and estate administration services [11]

Executive Summary - TrustCo Bank Corp NY reported a fourth quarter 2024 net income of $11.3 million, an increase from $9.8 million in the same quarter of 2023, with diluted earnings per share rising to $0.59 from $0.52 [2][6] - For the full year 2024, net income was $48.8 million, down from $58.6 million in 2023, with diluted earnings per share decreasing to $2.57 from $3.08 [2][6] - Average loans increased by $104.9 million or 2.1% year-over-year in Q4 2024, driven by a significant rise in home equity lines of credit [2][4] Financial Performance - Net interest income for Q4 2024 was $38.9 million, a slight increase of $295 thousand or 0.8% compared to Q4 2023 [5][6] - The net interest margin decreased to 2.15%, down from 2.21% in Q4 2023, while the yield on interest-earning assets increased to 4.12% [5][6] - Average deposits rose by $31.7 million or 0.6% in Q4 2024, primarily due to an increase in time deposits [4][6] Asset Quality - The company recorded a provision for credit losses of $400 thousand in Q4 2024, with the allowance for credit losses on loans to total loans ratio at 0.99% [7][6] - Nonperforming loans (NPLs) were $18.8 million, representing 0.37% of total loans, compared to $17.7 million or 0.35% in the previous year [7][6] - The coverage ratio for allowance for credit losses on loans to NPLs was 267.3% as of December 31, 2024 [7][6] Capital Position - The consolidated equity to assets ratio increased to 10.84% as of December 31, 2024, up from 10.46% a year earlier [8][6] - Book value per share rose to $35.56, a 4.8% increase from $33.92 at the end of 2023 [8][6] - The company maintained a strong capital position while controlling costs and delivering returns to shareholders through dividends and price appreciation [3][6] Operational Highlights - TrustCo Bank operated 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida as of December 31, 2024 [10] - The company focused on leveraging customer relationships to increase lending volume, particularly in home equity loans [3][6] - Noninterest expenses decreased by $666 thousand compared to Q4 2023, reflecting a decline in full-time equivalent employees [5][6]

Core Viewpoint - TrustCo Bank Corp NY will release its fourth quarter 2024 results on January 21, 2025, with a conference call scheduled for January 22, 2025, to discuss the results [1][2]. Company Overview - TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company operating 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida through its subsidiary, Trustco Bank [3]. - The common shares of TrustCo are traded on The NASDAQ Global Select Market 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]. Conference Call Details - The conference call to discuss the fourth quarter results will take place at 9:00 a.m. Eastern Time on January 22, 2025, with toll-free dial-in numbers provided for participants in the United States and Canada [1]. - An audio webcast of the call will be available for one year, and the earnings press release will be posted on the Company's Investor Relations website [2].