TrustBank NY(TRST) - 2025 Q1 - Quarterly Results

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].