TrustBank NY(TRST) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights This section provides a concise overview of TrustCo Bank Corp NY's strong Q2 2025 financial performance and key strategic achievements Second Quarter 2025 Financial Performance TrustCo Bank Corp NY reported strong Q2 2025 results, with net income up 19.8% to $15.0M, diluted EPS $0.79, and NIM expanded to 2.71% | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------- | :------ | :------ | :--------- | | Net Income | $15.0M | $12.6M | 19.8% | | Diluted EPS | $0.79 | $0.66 | 19.7% | | Net Interest Income | $41.7M | $37.8M | 10.5% | | Net Interest Margin | 2.71% | 2.53% | +18 bps | - Loan growth gained momentum, with total average loans increasing $115.6 million or 2.3% year-over-year, signaling increasing borrower confidence and supporting the Bank's strategic focus on high-quality relationship lending[2] Key Metrics and Ratios Capital strengthened: equity to assets 10.91%, book value per share $36.75, with 169K shares repurchased | Metric | As of June 30, 2025 | As of June 30, 2024 | Change | | :-------------------------------- | :------------------ | :------------------ | :----- | | Consolidated Equity to Assets | 10.91% | 10.73% | +0.18% | | Book Value Per Share | $36.75 | $34.46 | +$2.29 | | Assets Under Management | $1.19B | N/A | +8.2% | | Trustco Financial Services Income | $1.8M | N/A | +13.0% | - 169 thousand shares of TrustCo common stock were purchased under the stock repurchase program during Q2 2025[3] Management Commentary & Operational Review This section details management's perspective on strategic execution and a review of key operational areas, including loan growth, net interest income, and asset quality Chairman's Overview Chairman McCormick highlighted strategic agility, driving double-digit return growth, improved efficiency, and strong loan growth, avoiding risky multi-family loans - Return on average assets improved 17% year over year, and return on average equity grew 12.5%[4] - Net interest margin improved 7% year over year, in tandem with a 12% year over year improvement in adjusted efficiency ratio[4] - Home equity credit lines are up 18% year over year, and commercial loans grew 11% year over year[4] Loan and Deposit Growth Significant loan growth (2.3% YoY, $115.6M) and deposit growth (3.3% YoY, $173.4M) across key segments, reflecting economic confidence | Loan Category | Q2 2025 YoY Change (Value) | Q2 2025 YoY Change (%) | | :-------------------- | :------------------------- | :--------------------- | | Total Average Loans | +$115.6 million | +2.3% | | Average Residential Loans | +$27.9 million | +0.6% | | Average HECLs | +$64.7 million | +17.8% | | Average Commercial Loans | +$25.8 million | +9.2% | - Average deposits were up $173.4 million, or 3.3%, for the second quarter 2025 over the same period in 2024, primarily due to increases in time deposits, interest-bearing checking accounts, and demand deposits[5] Shareholder Value and Capital Management Shareholder value enhanced by 169K share repurchases, improving equity to asset ratio to 10.91% and book value per share to $36.75 - TrustCo purchased 169 thousand, or 0.9%, of total shares outstanding of TrustCo common stock under the previously announced stock repurchase program during the second quarter of 2025[6] | Metric | As of June 30, 2025 | As of June 30, 2024 | Change (%) | | :------------------ | :------------------ | :------------------ | :--------- | | Equity to Asset Ratio | 10.91% | 10.73% | +0.18% | | Book Value Per Share | $36.75 | $34.46 | +6.6% | Net Interest Income and Margin Net interest income increased 10.5% to $41.7M, with net interest margin expanding 18 bps to 2.71%, driven by loan growth and controlled deposit costs | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :------- | | Net Interest Income | $41.7M | $37.7M | +10.5% | | Net Interest Margin | 2.71% | 2.53% | +18 bps | | Yield on Interest Earning Assets | 4.19% | 4.06% | +13 bps | | Cost of Interest Bearing Liabilities | 1.91% | 1.97% | -6 bps | - The increase in net interest income was driven by loan growth at higher interest rates, an increase in interest on federal funds sold and other short-term investments, and less interest expense on deposit products[7] Non-Interest Income and Expense Non-interest income (excluding equity gains) rose to $4.9M, primarily from a 13.0% increase in wealth management fees, while non-interest expense saw a modest increase | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------ | :------ | :------ | :------- | | Non-interest Income (excl. equity gains) | $4.9M | $4.3M | +$0.6M | | Wealth Management & Financial Services Fees | $1.8M | N/A | +13.0% | - Wealth management and financial services fees represent 37.5% of non-interest income for Q2 2025, with the majority being recurring income supported by long-term advisory relationships[8] - Non-interest expense increased $236 thousand over the second quarter of 2024[8] Asset Quality Asset quality remained strong, with a $650K provision for credit losses, stable allowance ratio, and a decrease in nonperforming loans and assets | Metric | As of June 30, 2025 | As of June 30, 2024 | Change | | :------------------------------------ | :------------------ | :------------------ | :------- | | Provision for Credit Losses (Q2) | $650K | N/A | N/A | | Allowance for Credit Losses to Total Loans | 0.99% | 0.99% | 0 bps | | Nonperforming Loans (NPLs) | $17.9M | $19.2M | -$1.3M | | NPLs to Total Loans | 0.35% | 0.38% | -0.03% | | Nonperforming Assets (NPAs) | $19.0M | $21.5M | -$2.5M | | Coverage Ratio (Allowance to NPLs) | 286.2% | 259.4% | +26.8% | Company Information This section provides essential details about TrustCo Bank Corp NY, including its operational scope, wealth management services, and investor communication channels About TrustCo Bank Corp NY TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company operating 136 offices across five states, offering comprehensive wealth management services - TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company[11] - As of June 30, 2025, Trustco Bank operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida[11] - The Bank's Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services[11] Conference Call Details Details for the Q2 2025 earnings conference call, including dial-in information and webcast access, were provided for investor participation - A conference call to discuss second quarter 2025 results will be held at 9:00 a.m. Eastern Time on July 22, 2025[10] - Dial-in details for the United States (1-833-470-1428) and Canada (1-833-950-0062), with Access code 258501, were provided[10](index=10