Executive Snapshot:
- Bank-wide financial results:
- Key metrics for the first quarter 2025:
- Net income of $14.3 million increased 17.7% compared to $12.1 million for the first quarter 2024
- Net interest income of $40.4 million, up 10.4% from $36.6 million compared to the first quarter 2024
- Average loans were up $104.7 million for the first quarter 2025 compared to the first quarter 2024
- Average deposits were up $103.3 million for the first quarter 2025 compared to the first quarter 2024
- Key metrics for the first quarter 2025:
- Capital position and key ratios:
- Consolidated equity to assets increased to 10.85% as of March 31, 2025 from 10.51% as of March 31, 2024
- Book value per share as of March 31, 2025 was $36.16, up from $34.12 as of March 31, 2024
- Stock repurchase program announced authorizing for up to one million shares or approximately 5% of TrustCo's current outstanding common stock
- Trustco Financial Services and Wealth Management income:
- Fees increased to $2.1 million or 16.7% compared to first quarter 2024
- Assets under management increased to $1.2 billion or 17.4% compared first quarter 2024
GLENVILLE, N.Y., April 21, 2025 (GLOBE NEWSWIRE) --
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced a robust start to 2025, marked by significant growth in both the loan and deposit portfolios of Trustco Bank during the first quarter of 2025 compared to the first quarter of 2024. This performance underscores the Bank's commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in first quarter 2025 net income of $14.3 million or $0.75 diluted earnings per share, compared to net income of $12.1 million or $0.64 diluted earnings per share for the first quarter 2024. Average loans increased $104.7 million or 2.1% for the first quarter 2025 over the same period in 2024. Average deposits increased $103.3 million or 1.9% for the first quarter 2025 over the same period in 2024.
Overview
Chairman, President, and CEO, Robert J. McCormick said "We are very pleased to announce today that tried and true Trustco Bank strategy has once again yielded exceptional results. We added loans at current market rates, which repriced our current loan portfolio higher, supporting long-term profitability. This was funded entirely by our own deposits, and we did so while holding the line on board rates. Despite aggressive market competition, we have favorably repriced our time deposits with the help of strong brand loyalty and digital engagement. These efforts yielded net income of $14.3 million and boosted all return metrics significantly year-over-year. Credit quality remains exceptional, with non-performing loans holding steady at a negligible 0.37%. The Bank also grew capital and thus maintains its position of strength. Based upon what we have seen in the first quarter, we anticipate that good things are likely in the future."
Details
Average loans were up $104.7 million, or 2.1%, in the first quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $26.2 million, or 0.6%, and $61.0 million, or 17.3%, respectively, in the first quarter 2025 over the same period in 2024. Average commercial loans also increased $20.7 million, or 7.5%, in the first quarter 2025 over the same period in 2024. This uptick reflects a strong local economy and increased demand for credit. Average deposits were up $103.3 million, or 1.9%, for the first quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. We believe the increase in these deposits compared to the same period in 2024 continues to indicate strong customer confidence in the Bank's competitive deposit offerings. As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.
During the first quarter of 2025, the TrustCo announced a stock repurchase program of up to one million shares, or approximately 5% of TrustCo's current outstanding shares of common stock. This repurchase initiative is part of the Bank's broader capital management strategy and is intended to enhance shareholder value while maintaining flexibility to support future growth. As of March 31, 2025, our equity to asset ratio was 10.85%, compared to 10.51% as of March 31, 2024. Book value per share as of March 31, 2025 was $36.16, up 6.0% compared to $34.12 a year earlier.
Net interest income was $40.4 million for the first quarter 2025, an increase of $3.8 million, or 10.4%, compared to the first quarter of 2024, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the first quarter 2025 was 2.64%, up 20 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.13% in the first quarter of 2025, up 14 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.92% in the first quarter 2025, down from 1.99% in the first quarter 2024. As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the Bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively, thereby supporting net interest margin. The Bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our communities' banking needs.
Non-interest income increased to $5.0 million as compared to $4.8 million for the first quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 16.7% to $2.1 million, driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-interest income. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $1.4 million over the first quarter of 2024 due to increases in several areas of expenses.
Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $300 thousand in the first quarter of 2025, which is the result of a provision for credit losses on loans of $100 thousand, and a provision for credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.98% as of March 31, 2025 and 2024, respectively. The allowance for credit losses on loans was $50.6 million as of March 31, 2025, compared to $49.2 million as of March 31, 2024. Nonperforming loans (NPLs) were $18.8 million as of March 31, 2025, compared to $18.3 million as of March 31, 2024. NPLs were 0.37% of total loans as of March 31, 2025 and 2024. The coverage ratio, or allowance for credit losses on loans to NPLs, was 269.8% as of March 31, 2025, compared to 269.3% as of March 31, 2024. Nonperforming assets (NPAs) were $20.9 million as of March 31, 2025, compared to $20.6 million as of March 31, 2024.
A conference call to discuss first quarter 2025 results will be held at 9:00 a.m. Eastern Time on April 22, 2025. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 048251. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 486810. The call will also be audio webcast at https://events.q4inc.com/attendee/647533404,and will be available for one year.
About TrustCo Bank Corp NY
TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of March 31, 2025.
In addition, the Bank's Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.
Forward-Looking Statements
All statements in this news release that are not historical are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers' business, including deposit balances, with us, the impact of the Federal Reserve's actions regarding interest rates, and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management's current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo's actual results and could cause TrustCo's actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures' ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.'s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses' use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading "Risk Factors" in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings, as well as our upcoming quarterly report on Form 10-Q for the first quarter of 2025. The forward-looking statements contained in this news release represent TrustCo management's judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.
| TRUSTCO BANK CORP NY | |||||||||
| GLENVILLE, NY | |||||||||
| FINANCIAL HIGHLIGHTS | |||||||||
| (dollars in thousands, except per share data) | |||||||||
| (Unaudited) | |||||||||
| Three months ended | |||||||||
| 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||
| Summary of operations | |||||||||
| Net interest income | $ | 40,373 | $ | 38,902 | $ | 36,578 | |||
| Provision for credit losses | 300 | 400 | 600 | ||||||
| Noninterest income | 4,974 | 4,409 | 4,843 | ||||||
| Noninterest expense | 26,329 | 28,165 | 24,903 | ||||||
| Net income | 14,275 | 11,281 | 12,126 | ||||||
| Per share | |||||||||
| Net income per share: | |||||||||
| - Basic | $ | 0.75 | $ | 0.59 | $ | 0.64 | |||
| - Diluted | 0.75 | 0.59 | 0.64 | ||||||
| Cash dividends | 0.36 | 0.36 | 0.36 | ||||||
| Book value at period end | 36.16 | 35.56 | 34.12 | ||||||
| Market price at period end | 30.48 | 33.31 | 28.16 | ||||||
| At period end | |||||||||
| Full time equivalent employees | 740 | 737 | 761 | ||||||
| Full service banking offices | 136 | 136 | 140 | ||||||
| Performance ratios | |||||||||
| Return on average assets | 0.93 | % | 0.73 | % | 0.80 | % | |||
| Return on average equity | 8.49 | 6.70 | 7.54 | ||||||
| Efficiency ratio (GAAP) | 58.06 | 65.03 | 59.94 | ||||||
| Adjusted Efficiency ratio (1) | 58.00 | 63.93 | 59.94 | ||||||
| Net interest spread | 2.21 | 2.15 | 2.00 | ||||||
| Net interest margin | 2.64 | 2.60 | 2.44 | ||||||
| Dividend payout ratio | 47.97 | 60.70 | 56.48 | ||||||
| Capital ratios at period end | |||||||||
| Consolidated equity to assets | 10.85 | % | 10.84 | % | 10.51 | % | |||
| Consolidated tangible equity to tangible assets (1) | 10.84 | % | 10.83 | % | 10.50 | % | |||
| Asset quality analysis at period end | |||||||||
| Nonperforming loans to total loans | 0.37 | % | 0.37 | % | 0.37 | % | |||
| Nonperforming assets to total assets | 0.33 | 0.34 | 0.33 | ||||||
| Allowance for credit losses on loans to total loans | 0.99 | 0.99 | 0.98 | ||||||
| Coverage ratio (2) | 2.7x | 2.7x | 2.7x | ||||||
| (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation. | |||||||||
| (2) Calculated as allowance for credit losses on loans divided by total nonperforming loans. | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three months ended | ||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| Interest and dividend income: | ||||||||||||||
| Interest and fees on loans | $ | 53,450 | $ | 53,024 | $ | 52,112 | $ | 50,660 | $ | 49,804 | ||||
| Interest and dividends on securities available for sale: | ||||||||||||||
| U. S. government sponsored enterprises | 596 | 680 | 718 | 909 | 906 | |||||||||
| State and political subdivisions | - | - | - | 1 | - | |||||||||
| Mortgage-backed securities and collateralized mortgage | ||||||||||||||
| obligations - residential | 1,483 | 1,418 | 1,397 | 1,451 | 1,494 | |||||||||
| Corporate bonds | 260 | 358 | 361 | 362 | 476 | |||||||||
| Small Business Administration - guaranteed | ||||||||||||||
| participation securities | 81 | 84 | 90 | 94 | 100 | |||||||||
| Other securities | 7 | 6 | 2 | 2 | 3 | |||||||||
| Total interest and dividends on securities available for sale | 2,427 | 2,546 | 2,568 | 2,819 | 2,979 | |||||||||
| Interest on held to maturity securities: | ||||||||||||||
| obligations - residential | 57 | 59 | 62 | 65 | 68 | |||||||||
| Total interest on held to maturity securities | 57 | 59 | 62 | 65 | 68 | |||||||||
| Federal Home Loan Bank stock | 151 | 152 | 153 | 147 | 152 | |||||||||
| Interest on federal funds sold and other short-term investments | 6,732 | 6,128 | 6,174 | 6,894 | 6,750 | |||||||||
| Total interest income | 62,817 | 61,909 | 61,069 | 60,585 | 59,753 | |||||||||
| Interest expense: | ||||||||||||||
| Interest on deposits: | ||||||||||||||
| Interest-bearing checking | 558 | 397 | 311 | 288 | 240 | |||||||||
| Savings | 734 | 719 | 770 | 675 | 712 | |||||||||
| Money market deposit accounts | 1,989 | 2,024 | 2,154 | 2,228 | 2,342 | |||||||||
| Time deposits | 18,983 | 19,680 | 18,969 | 19,400 | 19,677 | |||||||||
| Interest on short-term borrowings | 180 | 187 | 194 | 206 | 204 | |||||||||
| Total interest expense | 22,444 | 23,007 | 22,398 | 22,797 | 23,175 | |||||||||
| Net interest income | 40,373 | 38,902 | 38,671 | 37,788 | 36,578 | |||||||||
| Less: Provision for credit losses | 300 | 400 | 500 | 500 | 600 | |||||||||
| Net interest income after provision for credit losses | 40,073 | 38,502 | 38,171 | 37,288 | 35,978 | |||||||||
| Noninterest income: | ||||||||||||||
| Trustco Financial Services income | 2,120 | 1,778 | 2,044 | 1,609 | 1,816 | |||||||||
| Fees for services to customers | 2,645 | 2,226 | 2,482 | 2,399 | 2,745 | |||||||||
| Net gains on equity securities | - | - | 23 | 1,360 | - | |||||||||
| Other | 209 | 405 | 382 | 283 | 282 | |||||||||
| Total noninterest income | 4,974 | 4,409 | 4,931 | 5,651 | 4,843 | |||||||||
| Noninterest expenses: | ||||||||||||||
| Salaries and employee benefits | 11,894 | 12,068 | 12,134 | 12,520 | 11,427 | |||||||||
| Net occupancy expense | 4,554 | 4,563 | 4,271 | 4,375 | 4,611 | |||||||||
| Equipment expense | 1,944 | 2,404 | 1,757 | 1,990 | 1,738 | |||||||||
| Professional services | 1,726 | 1,782 | 1,863 | 1,570 | 1,460 | |||||||||
| Outsourced services | 2,700 | 3,051 | 2,551 | 2,755 | 2,501 | |||||||||
| Advertising expense | 361 | 590 | 339 | 466 | 408 | |||||||||
| FDIC and other insurance | 1,188 | 1,113 | 1,112 | 797 | 1,094 | |||||||||
| Other real estate expense, net | 28 | 476 | 204 | 16 | 74 | |||||||||
| Other | 1,934 | 2,118 | 1,969 | 1,970 | 1,590 | |||||||||
| Total noninterest expenses | 26,329 | 28,165 | 26,200 | 26,459 | 24,903 | |||||||||
| Income before taxes | 18,718 | 14,746 | 16,902 | 16,480 | 15,918 | |||||||||
| Income taxes | 4,443 | 3,465 | 4,027 | 3,929 | 3,792 | |||||||||
| Net income | $ | 14,275 | $ | 11,281 | $ | 12,875 | $ | 12,551 | $ | 12,126 | ||||
| Net income per common share: | ||||||||||||||
| - Basic | $ | 0.75 | $ | 0.59 | $ | 0.68 | $ | 0.66 | $ | 0.64 | ||||
| - Diluted | 0.75 | 0.59 | 0.68 | 0.66 | 0.64 | |||||||||
| Average basic shares (in thousands) | 19,020 | 19,015 | 19,010 | 19,022 | 19,024 | |||||||||
| Average diluted shares (in thousands) | 19,044 | 19,045 | 19,036 | 19,033 | 19,032 | |||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/3024 | 3/31/2024 | |||||||||||
| ASSETS: | |||||||||||||||
| Cash and due from banks | $ | 48,782 | $ | 47,364 | $ | 49,659 | $ | 42,193 | $ | 44,868 | |||||
| Federal funds sold and other short term investments | 707,355 | 594,448 | 473,306 | 493,920 | 564,815 | ||||||||||
| Total cash and cash equivalents | 756,137 | 641,812 | 522,965 | 536,113 | 609,683 | ||||||||||
| Securities available for sale: | |||||||||||||||
| U. S. government sponsored enterprises | 65,942 | 85,617 | 90,588 | 106,796 | 128,854 | ||||||||||
| States and political subdivisions | 18 | 18 | 26 | 26 | 26 | ||||||||||
| Mortgage-backed securities and collateralized mortgage | |||||||||||||||
| obligations - residential | 219,333 | 213,128 | 222,841 | 218,311 | 227,078 | ||||||||||
| Small Business Administration - guaranteed | |||||||||||||||
| participation securities | 13,683 | 14,141 | 15,171 | 15,592 | 16,260 | ||||||||||
| Corporate bonds | 24,779 | 44,581 | 54,327 | 53,764 | 53,341 | ||||||||||
| Other securities | 698 | 700 | 701 | 688 | 682 | ||||||||||
| Total securities available for sale | 324,453 | 358,185 | 383,654 | 395,177 | 426,241 | ||||||||||
| Held to maturity securities: | |||||||||||||||
| Mortgage-backed securities and collateralized mortgage | |||||||||||||||
| obligations-residential | 5,090 | 5,365 | 5,636 | 5,921 | 6,206 | ||||||||||
| Total held to maturity securities | 5,090 | 5,365 | 5,636 | 5,921 | 6,206 | ||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 6,507 | 6,507 | 6,507 | 6,507 | 6,203 | ||||||||||
| Loans: | |||||||||||||||
| Commercial | 302,753 | 286,857 | 280,261 | 282,441 | 279,092 | ||||||||||
| Residential mortgage loans | 4,380,561 | 4,388,302 | 4,382,674 | 4,370,640 | 4,354,369 | ||||||||||
| Home equity line of credit | 419,806 | 409,261 | 393,418 | 370,063 | 355,879 | ||||||||||
| Installment loans | 13,017 | 13,638 | 14,503 | 15,168 | 16,166 | ||||||||||
| Loans, net of deferred net costs | 5,116,137 | 5,098,058 | 5,070,856 | 5,038,312 | 5,005,506 | ||||||||||
| Less: Allowance for credit losses on loans | 50,606 | 50,248 | 49,950 | 49,772 | 49,220 | ||||||||||
| Net loans | 5,065,531 | 5,047,810 | 5,020,906 | 4,988,540 | 4,956,286 | ||||||||||
| Bank premises and equipment, net | 37,178 | 33,782 | 33,324 | 33,466 | 33,423 | ||||||||||
| Operating lease right-of-use assets | 34,968 | 36,627 | 37,958 | 38,376 | 39,647 | ||||||||||
| Other assets | 108,681 | 108,656 | 98,730 | 102,544 | 101,881 | ||||||||||
| Total assets | $ | 6,338,545 | $ | 6,238,744 | $ | 6,109,680 | $ | 6,106,644 | $ | 6,179,570 | |||||
| LIABILITIES: | |||||||||||||||
| Deposits: | |||||||||||||||
| Demand | $ | 793,306 | $ | 762,101 | $ | 753,878 | $ | 745,227 | $ | 742,997 | |||||
| Interest-bearing checking | 1,067,948 | 1,027,540 | 988,527 | 1,029,606 | 1,020,136 | ||||||||||
| Savings accounts | 1,094,968 | 1,086,534 | 1,092,038 | 1,144,427 | 1,155,517 | ||||||||||
| Money market deposit accounts | 478,872 | 465,049 | 477,113 | 517,445 | 532,611 | ||||||||||
| Time deposits | 2,061,576 | 2,049,759 | 1,952,635 | 1,840,262 | 1,903,908 | ||||||||||
| Total deposits | 5,496,670 | 5,390,983 | 5,264,191 | 5,276,967 | 5,355,169 | ||||||||||
| Short-term borrowings | 82,275 | 84,781 | 91,450 | 89,720 | 94,374 | ||||||||||
| Operating lease liabilities | 38,324 | 40,159 | 41,469 | 42,026 | 43,438 | ||||||||||
| Accrued expenses and other liabilities | 33,468 | 46,478 | 43,549 | 42,763 | 37,399 | ||||||||||
| Total liabilities | 5,650,737 | 5,562,401 | 5,440,659 | 5,451,476 | 5,530,380 | ||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||||||
| Capital stock | 20,097 | 20,097 | 20,058 | 20,058 | 20,058 | ||||||||||
| Surplus | 259,182 | 258,874 | 257,644 | 257,490 | 257,335 | ||||||||||
| Undivided profits | 453,931 | 446,503 | 442,079 | 436,048 | 430,346 | ||||||||||
| Accumulated other comprehensive loss, net of tax | (132 | ) | (3,861 | ) | (6,600 | ) | (14,268 | ) | (14,763 | ) | |||||
| Treasury stock at cost | (45,270 | ) | (45,270 | ) | (44,160 | ) | (44,160 | ) | (43,786 | ) | |||||
| Total shareholders' equity | 687,808 | 676,343 | 669,021 | 655,168 | 649,190 | ||||||||||
| Total liabilities and shareholders' equity | $ | 6,338,545 | $ | 6,238,744 | $ | 6,109,680 | $ | 6,106,644 | $ | 6,179,570 | |||||
| Outstanding shares (in thousands) | 19,020 | 19,020 | 19,010 | 19,010 | 19,024 | ||||||||||
| NONPERFORMING ASSETS | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||
| Nonperforming Assets | ||||||||||||||||
| New York and other states* | ||||||||||||||||
| Loans in nonaccrual status: | ||||||||||||||||
| Commercial | $ | 688 | $ | 343 | $ | 466 | $ | 741 | $ | 532 | ||||||
| Real estate mortgage - 1 to 4 family | 14,795 | 14,671 | 15,320 | 14,992 | 14,359 | |||||||||||
| Installment | 139 | 108 | 163 | 131 | 149 | |||||||||||
| Total non-accrual loans | 15,622 | 15,122 | 15,949 | 15,864 | 15,040 | |||||||||||
| Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | - | |||||||||||
| Total nonperforming loans | 15,622 | 15,122 | 15,949 | 15,864 | 15,040 | |||||||||||
| Other real estate owned | 2,107 | 2,175 | 2,503 | 2,334 | 2,334 | |||||||||||
| Total nonperforming assets | $ | 17,729 | $ | 17,297 | $ | 18,452 | $ | 18,198 | $ | 17,374 | ||||||
| Florida | ||||||||||||||||
| Loans in nonaccrual status: | ||||||||||||||||
| Commercial | $ | - | $ | - | $ | 314 | $ | 314 | $ | 314 | ||||||
| Real estate mortgage - 1 to 4 family | 3,135 | 3,656 | 3,176 | 2,985 | 2,921 | |||||||||||
| Installment | 3 | 22 | 5 | 22 | - | |||||||||||
| Total non-accrual loans | 3,138 | 3,678 | 3,495 | 3,321 | 3,235 | |||||||||||
| Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | - | |||||||||||
| Total nonperforming loans | 3,138 | 3,678 | 3,495 | 3,321 | 3,235 | |||||||||||
| Other real estate owned | - | - | - | - | - | |||||||||||
| Total nonperforming assets | $ | 3,138 | $ | 3,678 | $ | 3,495 | $ | 3,321 | $ | 3,235 | ||||||
| Total | ||||||||||||||||
| Loans in nonaccrual status: | ||||||||||||||||
| Commercial | $ | 688 | $ | 343 | $ | 780 | $ | 1,055 | $ | 846 | ||||||
| Real estate mortgage - 1 to 4 family | 17,930 | 18,327 | 18,496 | 17,977 | 17,280 | |||||||||||
| Installment | 142 | 130 | 168 | 153 | 149 | |||||||||||
| Total non-accrual loans | 18,760 | 18,800 | 19,444 | 19,185 | 18,275 | |||||||||||
| Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | - | |||||||||||
| Total nonperforming loans | 18,760 | 18,800 | 19,444 | 19,185 | 18,275 | |||||||||||
| Other real estate owned | 2,107 | 2,175 | 2,503 | 2,334 | 2,334 | |||||||||||
| Total nonperforming assets | $ | 20,867 | $ | 20,975 | $ | 21,947 | $ | 21,519 | $ | 20,609 | ||||||
| Quarterly Net (Recoveries) Chargeoffs | ||||||||||||||||
| New York and other states* | ||||||||||||||||
| Commercial | $ | (3 | ) | $ | 62 | $ | 65 | $ | - | $ | - | |||||
| Real estate mortgage - 1 to 4 family | 41 | (316 | ) | 104 | (74 | ) | (78 | ) | ||||||||
| Installment | 4 | 41 | 11 | (2 | ) | 36 | ||||||||||
| Total net chargeoffs (recoveries) | $ | 42 | $ | (213 | ) | $ | 180 | $ | (76 | ) | $ | (42 | ) | |||
| Florida | ||||||||||||||||
| Commercial | $ | (315 | ) | $ | 314 | $ | - | $ | - | $ | - | |||||
| Real estate mortgage - 1 to 4 family | - | - | - | 17 | - | |||||||||||
| Installment | 15 | 1 | 42 | 7 | - | |||||||||||
| Total net (recoveries) chargeoffs | $ | (300 | ) | $ | 315 | $ | 42 | $ | 24 | $ | - | |||||
| Total | ||||||||||||||||
| Commercial | $ | (318 | ) | $ | 376 | $ | 65 | $ | - | $ | - | |||||
| Real estate mortgage - 1 to 4 family | 41 | (316 | ) | 104 | (57 | ) | (78 | ) | ||||||||
| Installment | 19 | 42 | 53 | 5 | 36 | |||||||||||
| Total net (recoveries) chargeoffs | $ | (258 | ) | $ | 102 | $ | 222 | $ | (52 | ) | $ | (42 | ) | |||
| Asset Quality Ratios | ||||||||||||||||
| Total nonperforming loans (1) | $ | 18,760 | $ | 18,800 | $ | 19,444 | $ | 19,185 | $ | 18,275 | ||||||
| Total nonperforming assets (1) | 20,867 | 20,975 | 21,947 | 21,519 | 20,609 | |||||||||||
| Total net (recoveries) chargeoffs (2) | (258 | ) | 102 | 222 | (52 | ) | (42 | ) | ||||||||
| Allowance for credit losses on loans (1) | 50,606 | 50,248 | 49,950 | 49,772 | 49,220 | |||||||||||
| Nonperforming loans to total loans | 0.37 | % | 0.37 | % | 0.38 | % | 0.38 | % | 0.37 | % | ||||||
| Nonperforming assets to total assets | 0.33 | % | 0.34 | % | 0.36 | % | 0.35 | % | 0.33 | % | ||||||
| Allowance for credit losses on loans to total loans | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.98 | % | ||||||
| Coverage ratio (1) | 269.8 | % | 267.3 | % | 256.9 | % | 259.4 | % | 269.3 | % | ||||||
| Annualized net (recoveries) chargeoffs to average loans (2) | -0.02 | % | 0.01 | % | 0.02 | % | 0.00 | % | 0.00 | % | ||||||
| Allowance for credit losses on loans to annualized net chargeoffs (2) | N/A | 123.2x | 56.3x | N/A | N/A | |||||||||||
| * Includes New York, New Jersey, Vermont and Massachusetts. | ||||||||||||||||
| (1) At period-end | ||||||||||||||||
| (2) For the three-month period ended | ||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY - | |||||||||||||||||
| INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| (Unaudited) | Three months ended | Three months ended | |||||||||||||||
| March 31, 2025 | March 31, 2024 | ||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||||||
| Balance | Rate | Balance | Rate | ||||||||||||||
| Assets | |||||||||||||||||
| Securities available for sale: | |||||||||||||||||
| U. S. government sponsored enterprises | $ | 74,680 | $ | 596 | 3.19 | % | $ | 125,973 | $ | 906 | 2.88 | % | |||||
| Mortgage backed securities and collateralized mortgage | |||||||||||||||||
| obligations - residential | 239,509 | 1,483 | 2.46 | 258,814 | 1,494 | 2.30 | |||||||||||
| State and political subdivisions | 18 | - | 6.77 | 26 | 0 | 6.90 | |||||||||||
| Corporate bonds | 40,019 | 260 | 2.60 | 73,625 | 476 | 2.59 | |||||||||||
| Small Business Administration - guaranteed | |||||||||||||||||
| participation securities | 15,003 | 81 | 2.15 | 18,224 | 100 | 2.20 | |||||||||||
| Other | 699 | 7 | 4.01 | 696 | 3 | 1.72 | |||||||||||
| Total securities available for sale | 369,928 | 2,427 | 2.62 | 477,358 | 2,979 | 2.50 | |||||||||||
| Federal funds sold and other short-term Investments | 613,646 | 6,732 | 4.45 | 497,652 | 6,750 | 5.45 | |||||||||||
| Held to maturity securities: | |||||||||||||||||
| Mortgage backed securities and collateralized mortgage | |||||||||||||||||
| obligations - residential | 5,233 | 57 | 4.34 | 6,329 | 68 | 4.30 | |||||||||||
| Total held to maturity securities | 5,233 | 57 | 4.34 | 6,329 | 68 | 4.30 | |||||||||||
| Federal Home Loan Bank stock | 6,507 | 151 | 9.28 | 6,203 | 152 | 9.80 | |||||||||||
| Commercial loans | 297,926 | 4,165 | 5.59 | 277,183 | 3,661 | 5.28 | |||||||||||
| Residential mortgage loans | 4,385,646 | 42,614 | 3.89 | 4,359,476 | 40,415 | 3.71 | |||||||||||
| Home equity lines of credit | 413,981 | 6,435 | 6.30 | 353,004 | 5,464 | 6.22 | |||||||||||
| Installment loans | 12,967 | 236 | 7.37 | 16,128 | 264 | 6.58 | |||||||||||
| Loans, net of unearned income | 5,110,520 | 53,450 | 4.19 | 5,005,791 | 49,804 | 3.98 | |||||||||||
| Total interest earning assets | 6,105,834 | $ | 62,817 | 4.13 | 5,993,333 | $ | 59,753 | 3.99 | |||||||||
| Allowance for credit losses on loans | (50,475 | ) | (48,824 | ) | |||||||||||||
| Cash & non-interest earning assets | 201,154 | 185,230 | |||||||||||||||
| Total assets | $ | 6,256,513 | $ | 6,129,739 | |||||||||||||
| Liabilities and shareholders' equity | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Interest bearing checking accounts | $ | 1,038,218 | $ | 558 | 0.22 | % | $ | 990,130 | $ | 240 | 0.10 | % | |||||
| Money market accounts | 469,070 | 1,989 | 1.72 | 544,687 | 2,342 | 1.73 | |||||||||||
| Savings | 1,089,358 | 734 | 0.27 | 1,158,558 | 712 | 0.25 | |||||||||||
| Time deposits | 2,054,494 | 18,984 | 3.75 | 1,889,929 | 19,677 | 4.19 | |||||||||||
| Total interest bearing deposits | 4,651,140 | 22,265 | 1.94 | 4,583,304 | 22,971 | 2.02 | |||||||||||
| Short-term borrowings | 83,207 | 180 | 0.88 | 93,316 | 204 | 0.88 | |||||||||||
| Total interest bearing liabilities | 4,734,347 | $ | 22,445 | 1.92 | 4,676,620 | $ | 23,175 | 1.99 | |||||||||
| Demand deposits | 761,800 | 726,299 | |||||||||||||||
| Other liabilities | 78,748 | 80,158 | |||||||||||||||
| Shareholders' equity | 681,618 | 646,662 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 6,256,513 | $ | 6,129,739 | |||||||||||||
| Net interest income | $ | 40,372 | $ | 36,578 | |||||||||||||
| Net interest spread | 2.21 | % | 2.00 | % | |||||||||||||
| Net interest margin (net interest income to | |||||||||||||||||
| total interest earning assets) | 2.64 | % | 2.44 | % | |||||||||||||
Non-GAAP Financial Measures Reconciliation
Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders' equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.
Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders' equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.
Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.
We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.
| NON-GAAP FINANCIAL MEASURES RECONCILIATION | ||||||||||
| (dollars in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Tangible Book Value Per Share | ||||||||||
| Equity (GAAP) | $ | 687,808 | $ | 676,343 | $ | 649,190 | ||||
| Less: Intangible assets | 553 | 553 | 553 | |||||||
| Tangible equity (Non-GAAP) | $ | 687,255 | $ | 675,790 | $ | 648,637 | ||||
| Shares outstanding | 19,020 | 19,020 | 19,024 | |||||||
| Tangible book value per share | 36.13 | 35.53 | 34.10 | |||||||
| Book value per share | 36.16 | 35.56 | 34.12 | |||||||
| Tangible Equity to Tangible Assets | ||||||||||
| Total Assets (GAAP) | $ | 6,338,545 | $ | 6,238,744 | $ | 6,179,570 | ||||
| Less: Intangible assets | 553 | 553 | 553 | |||||||
| Tangible assets (Non-GAAP) | $ | 6,337,992 | $ | 6,238,191 | $ | 6,179,017 | ||||
| Equity to Assets (GAAP) | 10.85 | % | 10.84 | % | 10.51 | % | ||||
| Tangible Equity to Tangible Assets (Non-GAAP) | 10.84 | % | 10.83 | % | 10.50 | % | ||||
| Three months ended | ||||||||||
| Efficiency and Adjusted Efficiency Ratios | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||
| Net interest income (GAAP) | A | $ | 40,373 | $ | 38,902 | $ | 36,578 | |||
| Non-interest income (GAAP) | B | 4,974 | 4,409 | 4,843 | ||||||
| Revenue used for efficiency ratio (GAAP) | C | $ | 45,347 | $ | 43,311 | $ | 41,421 | |||
| Total noninterest expense (GAAP) | D | $ | 26,329 | $ | 28,165 | $ | 24,903 | |||
| Less: Other real estate expense, net | E | 28 | 476 | 74 | ||||||
| Expense used for efficiency ratio (Non-GAAP) | F | $ | 26,301 | $ | 27,689 | $ | 24,829 | |||
| Efficiency Ratio (GAAP) | D/C | 58.06 | % | 65.03 | % | 59.94 | % | |||
| Adjusted Efficiency Ratio (Non-GAAP) | F/C | 58.00 | % | 63.93 | % | 59.94 | % | |||
| Subsidiary: | Trustco Bank | |
| Contact: | Robert Leonard | |
| Executive Vice President | ||
| (518) 381-3693 |
