Trustco Caps Year of Efficiency, Strength, and Value - Reports Fourth Quarter 2024 Net Income of $11.3 Million; $48.8 Million for the Year

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]