TrustCo Delivers Once Again With Second Quarter Results Net Interest Margin Up 3.7% on Loan Growth of 3.8%

Executive Summary - TrustCo Bank Corp NY reported a net income of $12.6 million for the second quarter of 2024, an increase from $12.1 million in the first quarter of 2024, but a decrease from $16.4 million in the second quarter of 2023 [2][4] - Average loans increased by $182.2 million or 3.8% compared to the same period in 2023, with significant growth in residential and commercial loans [5][6] - The bank's net interest income rose to $37.8 million, up from $36.6 million in the previous quarter, driven by loan growth at higher interest rates [6][14] Financial Performance - Net income for the second quarter of 2024 was $12.6 million, or $0.66 diluted earnings per share, compared to $16.4 million, or $0.86 diluted earnings per share for the same quarter in 2023 [2][14] - Net interest income for the second quarter of 2024 was $37.8 million, a 3.3% increase from the previous quarter [6][14] - Return on average assets (ROAA) improved to 0.82% from 0.80% in the first quarter of 2024, while return on average equity (ROAE) increased to 7.76% from 7.54% [2][14] Asset Quality - Nonperforming loans (NPLs) decreased to $19.2 million as of June 30, 2024, down from $19.4 million a year earlier, with NPLs to total loans at 0.38% compared to 0.40% [2][7] - The allowance for credit losses on loans was $49.8 million, representing 0.99% of total loans, up from 0.96% a year earlier [7][15] - Nonperforming assets (NPAs) to total assets was 0.35%, slightly up from 0.34% in the previous year [2][15] Capital Position - Consolidated equity to assets ratio increased to 10.73% as of June 30, 2024, from 10.23% a year earlier [2][8] - Book value per share rose to $34.46, up 5.5% from $32.66 a year earlier [8][14] - Average deposits increased by $77.4 million or 1.5% compared to the same period in 2023, reflecting customer preference for the bank's conservative banking approach [5][6] Strategic Insights - The bank's growth in loans and deposits is attributed to competitive pricing and exceptional customer service, with a focus on maintaining net interest margins despite upward pressure on deposit rates [4][6] - The strategic decision to retain Visa Class C shares resulted in a gain of $1.4 million, showcasing the bank's effective asset management [3][4]