TrustBank NY(US:TRST)2025-04-22 15:44Financial Data and Key Metrics Changes - The company reported a net income of $14.3 million for the first quarter of 2025, an increase of 17.7% compared to the prior year quarter [13] - Return on average assets and return on average equity were 0.93% and 8.49%, respectively, both up 27% year-over-year [8] - Consolidated equity to assets ratio was 10.85%, up 3% year-over-year, and shareholders' equity increased by 6% year-over-year [9][14] - Net interest income for the first quarter of 2025 was $40.4 million, an increase of $3.8 million or 10.4% compared to the prior year quarter [18] Business Line Data and Key Metrics Changes - Total loans increased by $104.7 million or 2.1% year-over-year, reaching an all-time high of $5.1 billion [15] - Home equity lines of credit increased by $61 million or 17.3%, while residential real estate portfolio grew by $26.2 million [16][24] - Commercial loans increased by $20.7 million or 7.5% over the same period [16][24] - Non-performing loans remained flat at 0.37%, indicating strong asset quality [28] Market Data and Key Metrics Changes - Total deposits ended the quarter at $5.5 billion, up $142 million compared to the prior year quarter [17] - The company noted strong customer confidence in its competitive deposit offerings, particularly in time deposits [17] Company Strategy and Development Direction - The company is focused on relationship banking and solid financial practices to navigate a complex economic environment [18] - A stock repurchase program of up to 1 million shares was announced, representing approximately 5% of current outstanding shares, aimed at enhancing shareholder value [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the local economy, particularly in the Capital District and Central Florida, which are described as stable and strong [35][36] - The company anticipates that a lower interest rate environment may provide opportunities to manage deposit costs more effectively [19] Other Important Information - The Wealth Management division had approximately $1.1 billion of assets under management, with non-interest income from this segment increasing by 16.7% [20] - Total non-interest expense was $26.3 million, up $1.4 million from the prior year quarter, primarily due to higher salary and employee benefits [22] Q&A Session Summary Question: Is the strong local economy referenced in the press release specific to the Capital region or all markets? - Management indicated that the Capital District has a stable economy with less volatility, and Central Florida remains strong as well [35][36] Question: What are the trends in residential home prices? - Management noted that home prices are stable but not increasing, with no significant drops expected [38] Question: What changed regarding the share repurchase plan compared to last year? - Management explained that the larger 5% repurchase plan reflects a more favorable tone towards share repurchases this year, with an intent to fully execute [40] Question: What target capital ratio is the company contemplating? - Management did not specify a target capital ratio but indicated that there is room for additional repurchases while maintaining a strong capital position [42]