TrustCo Bank Corp NY Q3 2024 Financial Results

TrustCo Bank Corp NY, a savings and loan holding company, has released its financial results for the third quarter of 2024. The company, which operates 138 offices across New York, New Jersey, Vermont, Massachusetts, and Florida, reported a net income of $12.9 million for the quarter.

Financial Highlights

For the third quarter of 2024, TrustCo reported a net income of $12.9 million, or $0.68 diluted earnings per share, compared to $14.7 million, or $0.77 diluted earnings per share, for the same period in 2023. The net interest income for the quarter was $38.7 million, an increase from $37.8 million in the second quarter of 2024. The return on average equity (ROAE) was 7.74%, slightly down from 7.76% in the previous quarter.

Average loans increased by $127.0 million, or 2.6%, compared to the third quarter of 2023. The company also saw a rise in average residential loans and home equity lines of credit, which were up by $50.4 million and $60.0 million, respectively. Average commercial loans increased by $18.1 million, or 6.9%, over the same period.

Business and Operational Highlights

TrustCo's strategic focus on home equity lines of credit (HECLs) has paid off, with a significant increase in balances through an aggressive campaign encouraging existing customers to utilize their HECLs. This move was aimed at meeting customer needs and promoting increased utilization of existing HECLs.

The company also reported a decrease in non-interest expense by $259 thousand over the prior quarter, reflecting ongoing efforts to control expenses. Asset quality remained strong, with a provision for credit losses of $500 thousand in the third quarter of 2024.

Strategic Initiatives and Corporate Developments

TrustCo's consolidated equity to assets ratio increased to 10.95% as of September 30, 2024, up from 10.31% a year earlier. The book value per share also saw an increase, reaching $35.19 compared to $32.80 in the previous year. The company continues to focus on maintaining strong customer relationships and directing funds into competitively-priced CDs.

Management's Perspective

Chairman, President, and CEO Robert J. McCormick commented, "Hard, consistent work on the fundamentals of banking once again have served the Trustco Bank team well and enabled us to post strong results under challenging circumstances. Our bankers posted one modest success after another – which accumulated into solid performance."

Future Outlook

Looking ahead, TrustCo aims to continue its focus on loan growth at higher interest rates and managing deposit costs effectively. The Federal Reserve's decisions on interest rates will play a crucial role in the company's ability to manage deposit costs and expand margins in future quarters.

SEC Filing: TRUSTCO BANK CORP N Y [ TRST ] - 8-K - Oct. 21, 2024