TrustCo Reports First Quarter 2025 Net Income of $14.3 Million From Repricing Loan Portfolio and Well-Managed Cost of Funds

Executive Summary - TrustCo Bank Corp NY reported a strong start to 2025, with significant growth in loan and deposit portfolios compared to Q1 2024, resulting in a net income of $14.3 million or $0.75 diluted earnings per share, up from $12.1 million or $0.64 diluted earnings per share in the same period last year [2][3][5]. Financial Performance - Average loans increased by $104.7 million or 2.1% year-over-year, with residential loans up $26.2 million (0.6%) and home equity lines of credit (HECLs) up $61.0 million (17.3%) [4][5]. - Average deposits rose by $103.3 million or 1.9%, driven by increases in time deposits, interest-bearing checking accounts, and demand deposits [4][5]. - Net interest income for Q1 2025 was $40.4 million, a 10.4% increase from $36.6 million in Q1 2024, supported by loan growth at higher interest rates [5][8]. - Non-interest income increased to $5.0 million, primarily due to a 16.7% rise in wealth management and financial services fees [9]. Capital Position - The consolidated equity to assets ratio improved to 10.85% as of March 31, 2025, compared to 10.51% a year earlier [5][7]. - Book value per share increased to $36.16, up from $34.12 in the previous year [7][12]. - A stock repurchase program was announced, authorizing the buyback of up to one million shares, approximately 5% of the current outstanding common stock [7][12]. Asset Quality - Credit quality remained strong, with non-performing loans (NPLs) steady at 0.37% of total loans, and the allowance for credit losses on loans was $50.6 million [10][24]. - The coverage ratio for allowance for credit losses on loans to NPLs was 269.8% as of March 31, 2025, indicating strong asset quality management [10][24]. Market Position - TrustCo Bank operates 136 offices across New York, New Jersey, Vermont, Massachusetts, and Florida, with total assets of $6.3 billion as of March 31, 2025 [12][19]. - The bank's strategic focus on relationship banking and solid financial practices is expected to support continued success despite a complex economic environment [6].