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Skillful Application of Fundamental Principles Yields Standout Results: TrustCo Announces Net Income Up 19.8%; Net Interest Income up 10.5%
Globenewswire· 2025-07-21 20:00
Executive Summary - TrustCo Bank Corp NY reported strong financial results for Q2 2025, with net interest income rising 10.5% year over year to $41.7 million, driven by higher loan yields and controlled deposit costs [2][5][8] - The net income for Q2 2025 was $15.0 million, or $0.79 diluted earnings per share, reflecting a 19.8% increase compared to the same period in 2024 [5][16] - Loan growth accelerated, with total average loans increasing by $115.6 million, or 2.3%, signaling increased borrower confidence [2][4][6] Financial Performance - Net interest margin expanded to 2.71%, up from 2.53% in Q2 2024, due to improved asset yields and prudent deposit pricing strategies [2][5][8] - Return on average assets improved by 17% year over year, while return on average equity grew by 12.5% [3][5] - Non-interest income increased to $4.9 million, primarily driven by a 13.0% rise in wealth management and financial services fees [9][10] Loan and Deposit Growth - Average loans increased by $115.6 million, or 2.3%, in Q2 2025 compared to Q2 2024, with residential loans up by $27.9 million and home equity credit lines up by 17.8% [4][6] - Average deposits rose by $173.4 million, or 3.3%, primarily due to increases in time deposits and interest-bearing checking accounts [6][8] Asset Quality and Credit Losses - Non-performing loans decreased to $17.9 million, or 0.35% of total loans, down from $19.2 million, or 0.38%, in the previous year [10][17] - The allowance for credit losses on loans was $51.3 million, maintaining a ratio of 0.99% of total loans [10][17] Capital Position - Consolidated equity to assets increased to 10.91% as of June 30, 2025, compared to 10.73% a year earlier [5][7] - Book value per share rose to $36.75, up from $34.46 in the previous year, reflecting a 6.6% increase [5][7] Strategic Focus - The company emphasized a strategic focus on high-quality relationship lending, with significant growth in home equity products and commercial loans [3][4] - TrustCo's disciplined share repurchase program reflects confidence in the long-term strength of the franchise [7][8]