Financial Data and Key Metrics Changes - TrustCo Bank reported a net income of $16.3 million for Q3 2025, a 26.3% increase compared to Q3 2024, with a return on average assets of 1.02% and return on average equity of 9.29% [8][9] - The efficiency ratio improved by almost 9% year-over-year, indicating enhanced profitability and operational efficiency [5] - The consolidated equity-to-assets ratio was 10.90% for Q3 2025, slightly down from 10.95% in Q3 2024 [9] Business Line Data and Key Metrics Changes - Average loans grew by 2.5% or $125.9 million to $5.2 billion year-over-year, with home equity loans increasing by 15.7% [10][14] - The residential real estate portfolio increased by $34 million or 0.8%, while average commercial loans rose by $34.6 million or 12.4% [10] - Non-performing loans decreased to $18.5 million, with non-performing loans to total loans at 0.36%, down from 0.38% a year ago [9][17] Market Data and Key Metrics Changes - Total deposits reached $5.5 billion, up $217 million compared to the prior year, reflecting strong customer confidence [11] - The net interest margin for Q3 2025 was 2.79%, an increase of 18 basis points from the prior year [12] - The yield on interest-earning assets increased to 4.25%, while the cost of interest-bearing liabilities decreased to 1.9% [12] Company Strategy and Development Direction - TrustCo Bank aims to enhance shareholder value through a disciplined share repurchase program, having repurchased nearly half of the approved one million shares [7][9] - The company focuses on maintaining high-quality underwriting standards and conservative lending practices to manage credit risk effectively [10][16] - Expansion opportunities are being explored in Pasco County, Florida, and downstate New York, with a focus on strategic locations [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's long-term strength and the potential for meaningful net interest income upside due to maturing CDs [25][26] - The real estate market remains strong, contributing to recoveries and demand for loans, particularly in residential and home equity segments [28][14] - The bank is well-positioned to continue delivering strong financial performance despite potential easing from the Federal Reserve [12] Other Important Information - The wealth management division had approximately $1.25 billion in assets under management, contributing significantly to non-interest income [12][13] - Total non-interest expense was $26.2 million, slightly down from the prior year, indicating effective cost management [13] Q&A Session Summary Question: What is the average rate for maturing CDs compared to new CDs? - The average rate on the $1 billion in CDs coming due is about 3.75%, with the highest rate currently offered at 4% for a three-month term [25][26] Question: Can you explain the recoveries in New York? - The recoveries are largely due to a strong real estate market, with $194,000 in recoveries relating to approximately five properties taken back [28] Question: What are the company's expansion plans? - TrustCo is looking at opportunities in Pasco County, Florida, and other locations in downstate New York for potential growth [29][30]