Trustco Caps Year of Efficiency, Strength, and Value - Reports Fourth Quarter 2024 Net Income of $11.3 Million; $48.8 Million for the Year
TrustCo Bank reported Q4 2024 net income of $11.3 million ($0.59 per share), up from $9.8 million ($0.52 per share) in Q4 2023. Full-year 2024 net income was $48.8 million ($2.57 per share), compared to $58.6 million ($3.08 per share) in 2023.
Key Q4 2024 metrics include: net interest income of $38.9 million (up 0.8% YoY), ROAA of 0.73%, and ROAE of 6.70%. Average loans increased by $104.9 million (2.1%) YoY, while average deposits grew by $31.7 million (0.6%). The bank's equity-to-assets ratio improved to 10.84%, with book value per share reaching $35.56.
Asset quality remained strong with a 0.99% allowance for credit losses ratio. Nonperforming loans were $18.8 million, representing 0.37% of total loans, with a coverage ratio of 267.3%.
TrustCo Bank ha riportato un reddito netto per il Q4 2024 di 11,3 milioni di dollari (0,59 dollari per azione), in aumento rispetto ai 9,8 milioni di dollari (0,52 dollari per azione) del Q4 2023. Il reddito netto per l'intero anno 2024 è stato di 48,8 milioni di dollari (2,57 dollari per azione), rispetto ai 58,6 milioni di dollari (3,08 dollari per azione) nel 2023.
I principali indicatori del Q4 2024 includono: un reddito da interessi netto di 38,9 milioni di dollari (in aumento dello 0,8% su base annua), un ROAA dell'0,73% e un ROAE del 6,70%. I prestiti medi sono aumentati di 104,9 milioni di dollari (2,1%) su base annua, mentre i depositi medi sono cresciuti di 31,7 milioni di dollari (0,6%). Il rapporto patrimonio netto/attività della banca è migliorato al 10,84%, con il valore contabile per azione che ha raggiunto i 35,56 dollari.
La qualità degli attivi è rimasta solida con un rapporto di accantonamento per perdite su crediti dell'0,99%. I prestiti non performanti ammontavano a 18,8 milioni di dollari, rappresentando lo 0,37% dei prestiti totali, con un rapporto di copertura del 267,3%.
TrustCo Bank reportó un ingreso neto del Q4 2024 de $11.3 millones ($0.59 por acción), un aumento respecto a los $9.8 millones ($0.52 por acción) en el Q4 2023. El ingreso neto del año completo 2024 fue de $48.8 millones ($2.57 por acción), en comparación con $58.6 millones ($3.08 por acción) en 2023.
Los indicadores clave del Q4 2024 incluyen: ingreso neto por intereses de $38.9 millones (un incremento del 0.8% interanual), ROAA del 0.73%, y ROAE del 6.70%. Los préstamos promedio aumentaron en $104.9 millones (2.1%) interanual, mientras que los depósitos promedio crecieron en $31.7 millones (0.6%). La relación de capital sobre activos del banco mejoró al 10.84%, alcanzando un valor contable por acción de $35.56.
La calidad de los activos se mantuvo fuerte con una relación de provisiones para pérdidas crediticias del 0.99%. Los préstamos no rentables sumaron $18.8 millones, representando el 0.37% del total de préstamos, con una relación de cobertura del 267.3%.
TrustCo Bank는 2024년 4분기 순이익이 1130만 달러 ($0.59 주당)로, 2023년 4분기 980만 달러 ($0.52 주당)에서 증가했다고 보고했습니다. 2024년 전체 연도 순이익은 4880만 달러 ($2.57 주당)로, 2023년 5860만 달러 ($3.08 주당)와 비교됩니다.
2024년 4분기의 주요 지표는 다음과 같습니다: 순이자 수익이 3890만 달러 (전년 대비 0.8% 증가), ROAA 0.73%, ROAE 6.70%. 평균 대출은 1억 490만 달러 (2.1%) 증가했으며, 평균 예금은 3170만 달러 (0.6%) 증가했습니다. 은행의 자본 비율은 10.84%로 개선되었으며, 주당 장부 가치는 $35.56에 도달했습니다.
자산 품질은 강력하게 유지되었으며, 신용 손실에 대한 적립금 비율은 0.99%였습니다. 부실 대출은 1880만 달러에 달하며, 전체 대출의 0.37%를 차지하고, 커버리지 비율은 267.3%입니다.
TrustCo Bank a déclaré un revenu net pour le quatrième trimestre 2024 de 11,3 millions de dollars (0,59 dollar par action), en hausse par rapport aux 9,8 millions de dollars (0,52 dollar par action) du quatrième trimestre 2023. Le revenu net pour l'année entière 2024 était de 48,8 millions de dollars (2,57 dollars par action), contre 58,6 millions de dollars (3,08 dollars par action) en 2023.
Les indicateurs clés du quatrième trimestre 2024 comprennent : un revenu net d'intérêts de 38,9 millions de dollars (en hausse de 0,8 % par rapport à l'année précédente), un ROAA de 0,73 % et un ROAE de 6,70 %. Les prêts moyens ont augmenté de 104,9 millions de dollars (2,1 %) par rapport à l'année précédente, tandis que les dépôts moyens ont progressé de 31,7 millions de dollars (0,6 %). Le ratio des capitaux propres sur les actifs de la banque s'est amélioré à 10,84 %, le montant comptable par action atteignant 35,56 dollars.
La qualité des actifs est restée solide, avec un ratio de provisions pour pertes sur créances de 0,99 %. Les prêts non performants s'élevaient à 18,8 millions de dollars, représentant 0,37 % du total des prêts, avec un ratio de couverture de 267,3 %.
TrustCo Bank meldete für das vierte Quartal 2024 einen Nettogewinn von 11,3 Millionen Dollar (0,59 Dollar pro Aktie), im Vergleich zu 9,8 Millionen Dollar (0,52 Dollar pro Aktie) im vierten Quartal 2023. Der Nettogewinn für das Gesamtjahr 2024 betrug 48,8 Millionen Dollar (2,57 Dollar pro Aktie), verglichen mit 58,6 Millionen Dollar (3,08 Dollar pro Aktie) im Jahr 2023.
Die wichtigsten Kennzahlen für das vierte Quartal 2024 umfassen: Nettozinsüberschuss von 38,9 Millionen Dollar (ein Anstieg von 0,8% im Jahresvergleich), ROAA von 0,73% und ROAE von 6,70%. Die durchschnittlichen Kredite stiegen um 104,9 Millionen Dollar (2,1%) im Jahresvergleich, während die durchschnittlichen Einlagen um 31,7 Millionen Dollar (0,6%) wuchsen. Die Eigenkapitalquote der Bank verbesserte sich auf 10,84%, und der Buchwert pro Aktie erreichte 35,56 Dollar.
Die Qualität der Vermögenswerte blieb stark, mit einer Rückstellung für Kreditausfälle von 0,99%. Die notleidenden Kredite betrugen 18,8 Millionen Dollar und repräsentierten 0,37% der Gesamtkredite, mit einer Deckungsquote von 267,3%.
- Net income increased 15.3% YoY to $11.3 million in Q4 2024
- Net interest income grew 0.8% YoY to $38.9 million
- Average loans increased 2.1% YoY ($104.9 million)
- Book value per share improved 4.8% to $35.56
- Strong asset quality with NPLs at only 0.37% of total loans
- Full-year 2024 net income declined 16.7% to $48.8 million from $58.6 million in 2023
- Net interest margin decreased to 2.15% from 2.21% YoY
- Cost of interest-bearing liabilities increased to 1.97% from 1.72% YoY
Insights
TrustCo's Q4 2024 results demonstrate resilient performance in a challenging banking environment, with quarterly net income rising 15.3% to
The net interest margin compression to
Particularly noteworthy is TrustCo's capital position, with an equity-to-assets ratio of
The bank's focus on relationship-based lending and deposit gathering, rather than chasing high-cost deposits, has helped maintain profitability. The modest
Looking ahead, TrustCo is well-positioned to benefit from potential Fed rate cuts in 2025, which could help expand margins and stimulate lending activity. The bank's strong capital position and credit quality provide a solid foundation for sustainable growth.
Executive Snapshot:
- Continued solid financial results:
- Key metrics for the fourth quarter 2024:
- Net income of
$11.3 million versus$9.8 million for the fourth quarter 2023 - Net interest income of
$38.9 million , up from$38.6 million compared to the fourth quarter 2023 - Return on average assets (ROAA) of
0.73% versus0.64% for the fourth quarter 2023 - Return on average equity (ROAE) of
6.70% versus6.21% for the fourth quarter 2023
- Net income of
- Key metrics for the fourth quarter 2024:
- Capital continues to grow:
- Consolidated equity to assets increased
3.6% to10.84% as of December 31, 2024 from10.46% as of December 31, 2023 - Book value per share as of December 31, 2024 was
$35.56 , up from$33.92 as of December 31, 2023
- Consolidated equity to assets increased
- Average Loan and Deposit portfolios continue to grow:
- On average, total loans were up
$104.9 million or2.1% for the fourth quarter 2024 compared to the fourth quarter 2023 - On average, total deposits were up
$31.7 million or0.6% for the fourth quarter 2024 compared to the fourth quarter 2023
- On average, total loans were up
GLENVILLE, N.Y., Jan. 21, 2025 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced fourth quarter 2024 net income of
Overview
Chairman, President, and CEO, Robert J. McCormick said, “The story of Trustco Bank for 2024 is one of efficiency, strength, and shareholder value. For the year, we controlled costs, resisted the temptation to chase deposits with rate, improved our already strong capital position, and delivered a meaningful return to our owners in the form of dividends and price appreciation. Year over year, the Company’s quarterly net income, net interest income, return on average assets, and return on average equity all grew. Likewise, credit quality remained impressive and, in classic Home Town Bank fashion, we leveraged customer relationships to create lending volume in the form of home equity loans. We come into 2025 well-capitalized, liquid, and ready to lend.”
Details
Average loans were up
Net interest income was
Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of
At December 31, 2024, our equity to asset ratio was
A conference call to discuss fourth quarter 2024 results will be held at 9:00 a.m. Eastern Time on January 22, 2024. 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 645488. 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 619481. The call will also be audio webcast at https://events.q4inc.com/attendee/773359679, and will be available for one year.
About TrustCo Bank Corp NY
TrustCo Bank Corp NY is a
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 growth of loans and deposits throughout our branch network. 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, 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; 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; 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; increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices; 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 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 adoption of artificial intelligence tools by us and/or our third-party vendors and service providers; 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, including our upcoming annual report on Form 10-K for fiscal 2024. 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.
Subsidiary: Trustco Bank
Contact:
Robert Leonard
Executive Vice President
(518) 381-3693
TRUSTCO BANK CORP NY | ||||||||||||
GLENVILLE, NY | ||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||
(dollars in thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended | ||||||||||||
12/31/2024 | 9/30/2024 | 12/31/2023 | ||||||||||
Summary of operations | ||||||||||||
Net interest income | $ | 38,902 | $ | 38,671 | $ | 38,607 | ||||||
Provision for credit losses | 400 | 500 | 1,350 | |||||||||
Net gains on equity securities | - | 23 | - | |||||||||
Noninterest income, excluding net gains on equity securities | 4,409 | 4,908 | 4,474 | |||||||||
Noninterest expense | 28,165 | 26,200 | 28,831 | |||||||||
Net income | 11,281 | 12,875 | 9,848 | |||||||||
Per share | ||||||||||||
Net income per share: | ||||||||||||
- Basic | $ | 0.59 | $ | 0.68 | $ | 0.52 | ||||||
- Diluted | 0.59 | 0.68 | 0.52 | |||||||||
Cash dividends | 0.36 | 0.36 | 0.36 | |||||||||
Book value at period end | 35.56 | 35.19 | 33.92 | |||||||||
Market price at period end | 33.31 | 33.07 | 31.05 | |||||||||
At period end | ||||||||||||
Full time equivalent employees | 737 | 735 | 750 | |||||||||
Full service banking offices | 136 | 138 | 140 | |||||||||
Performance ratios | ||||||||||||
Return on average assets | 0.73 | % | 0.84 | % | 0.64 | |||||||
Return on average equity | 6.70 | 7.74 | 6.21 | |||||||||
Efficiency ratio (1) | 65.03 | 60.09 | 66.92 | |||||||||
Adjusted Efficiency ratio (1) | 63.93 | 59.65 | 60.16 | |||||||||
Net interest spread | 2.15 | 2.17 | 2.21 | |||||||||
Net interest margin | 2.60 | 2.61 | 2.60 | |||||||||
Dividend payout ratio | 60.70 | 53.16 | 69.54 | |||||||||
Capital ratios at period end | ||||||||||||
Consolidated equity to assets | 10.84 | % | 10.95 | % | 10.46 | |||||||
Consolidated tangible equity to tangible assets (1) | 10.83 | % | 10.94 | % | 10.45 | |||||||
Asset quality analysis at period end | ||||||||||||
Nonperforming loans to total loans | 0.37 | % | 0.38 | % | 0.35 | |||||||
Nonperforming assets to total assets | 0.34 | 0.36 | 0.29 | |||||||||
Allowance for credit losses on loans to total loans | 0.99 | 0.99 | 0.97 | |||||||||
Coverage ratio (2) | 2.7x | 2.6x | 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. | ||||||||||||
FINANCIAL HIGHLIGHTS, Continued | ||||||||
(dollars in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
12/31/24 | 12/31/23 | |||||||
Summary of operations | ||||||||
Net interest income | $ | 151,939 | 171,845 | |||||
Provision for credit losses | 2,000 | 1,250 | ||||||
Net gains on equity securities | 1,383 | - | ||||||
Noninterest income, excluding net gains on equity securities | 18,451 | 18,315 | ||||||
Noninterest expense | 105,727 | 111,297 | ||||||
Net income | 48,833 | 58,646 | ||||||
Per share | ||||||||
Net income per share: | ||||||||
- Basic | $ | 2.57 | 3.08 | |||||
- Diluted | 2.57 | 3.08 | ||||||
Cash dividends | 1.44 | 1.44 | ||||||
Book value at period end | 35.56 | 33.92 | ||||||
Market price at period end | 33.31 | 31.05 | ||||||
Performance ratios | ||||||||
Return on average assets | 0.80 | % | 0.97 | |||||
Return on average equity | 7.43 | 9.46 | ||||||
Efficiency ratio (1) | 61.55 | 58.53 | ||||||
Adjusted Efficiency ratio (1) | 61.60 | 56.72 | ||||||
Net interest spread | 2.10 | 2.64 | ||||||
Net interest margin | 2.54 | 2.91 | ||||||
Dividend payout ratio | 56.09 | 46.71 | ||||||
(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 53,024 | $ | 52,112 | $ | 50,660 | $ | 49,804 | $ | 49,201 | ||||||||||
Interest and dividends on securities available for sale: | ||||||||||||||||||||
U. S. government sponsored enterprises | 680 | 718 | 909 | 906 | 750 | |||||||||||||||
State and political subdivisions | - | - | 1 | - | 1 | |||||||||||||||
Mortgage-backed securities and collateralized mortgage | ||||||||||||||||||||
obligations - residential | 1,418 | 1,397 | 1,451 | 1,494 | 1,533 | |||||||||||||||
Corporate bonds | 358 | 361 | 362 | 476 | 477 | |||||||||||||||
Small Business Administration - guaranteed | ||||||||||||||||||||
participation securities | 84 | 90 | 94 | 100 | 102 | |||||||||||||||
Other securities | 6 | 2 | 2 | 3 | 3 | |||||||||||||||
Total interest and dividends on securities available for sale | 2,546 | 2,568 | 2,819 | 2,979 | 2,866 | |||||||||||||||
Interest on held to maturity securities: | ||||||||||||||||||||
obligations - residential | 59 | 62 | 65 | 68 | 70 | |||||||||||||||
Total interest on held to maturity securities | 59 | 62 | 65 | 68 | 70 | |||||||||||||||
Federal Home Loan Bank stock | 152 | 153 | 147 | 152 | 149 | |||||||||||||||
Interest on federal funds sold and other short-term investments | 6,128 | 6,174 | 6,894 | 6,750 | 6,354 | |||||||||||||||
Total interest income | 61,909 | 61,069 | 60,585 | 59,753 | 58,640 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits: | ||||||||||||||||||||
Interest-bearing checking | 397 | 311 | 288 | 240 | 165 | |||||||||||||||
Savings | 719 | 770 | 675 | 712 | 707 | |||||||||||||||
Money market deposit accounts | 2,024 | 2,154 | 2,228 | 2,342 | 2,500 | |||||||||||||||
Time deposits | 19,680 | 18,969 | 19,400 | 19,677 | 16,460 | |||||||||||||||
Interest on short-term borrowings | 187 | 194 | 206 | 204 | 201 | |||||||||||||||
Total interest expense | 23,007 | 22,398 | 22,797 | 23,175 | 20,033 | |||||||||||||||
Net interest income | 38,902 | 38,671 | 37,788 | 36,578 | 38,607 | |||||||||||||||
Less: Provision for credit losses | 400 | 500 | 500 | 600 | 1,350 | |||||||||||||||
Net interest income after provision for credit losses | 38,502 | 38,171 | 37,288 | 35,978 | 37,257 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Trustco Financial Services income | 1,778 | 2,044 | 1,609 | 1,816 | 1,612 | |||||||||||||||
Fees for services to customers | 2,226 | 2,482 | 2,399 | 2,745 | 2,563 | |||||||||||||||
Net gains on equity securities | - | 23 | 1,360 | - | - | |||||||||||||||
Other | 405 | 382 | 283 | 282 | 299 | |||||||||||||||
Total noninterest income | 4,409 | 4,931 | 5,651 | 4,843 | 4,474 | |||||||||||||||
Noninterest expenses: | ||||||||||||||||||||
Salaries and employee benefits | 12,068 | 12,134 | 12,520 | 11,427 | 12,444 | |||||||||||||||
Net occupancy expense | 4,563 | 4,271 | 4,375 | 4,611 | 4,209 | |||||||||||||||
Equipment expense | 2,404 | 1,757 | 1,990 | 1,738 | 1,852 | |||||||||||||||
Professional services | 1,782 | 1,863 | 1,570 | 1,460 | 1,561 | |||||||||||||||
Outsourced services | 3,051 | 2,551 | 2,755 | 2,501 | 2,532 | |||||||||||||||
Advertising expense | 590 | 339 | 466 | 408 | 384 | |||||||||||||||
FDIC and other insurance | 1,113 | 1,112 | 797 | 1,094 | 1,085 | |||||||||||||||
Other real estate expense (income), net | 476 | 204 | 16 | 74 | (12 | ) | ||||||||||||||
Other | 2,118 | 1,969 | 1,970 | 1,590 | 4,776 | |||||||||||||||
Total noninterest expenses | 28,165 | 26,200 | 26,459 | 24,903 | 28,831 | |||||||||||||||
Income before taxes | 14,746 | 16,902 | 16,480 | 15,918 | 12,900 | |||||||||||||||
Income taxes | 3,465 | 4,027 | 3,929 | 3,792 | 3,052 | |||||||||||||||
Net income | $ | 11,281 | $ | 12,875 | $ | 12,551 | $ | 12,126 | $ | 9,848 | ||||||||||
Net income per common share: | ||||||||||||||||||||
- Basic | $ | 0.59 | $ | 0.68 | $ | 0.66 | $ | 0.64 | $ | 0.52 | ||||||||||
- Diluted | 0.59 | 0.68 | 0.66 | 0.64 | 0.52 | |||||||||||||||
Average basic shares (in thousands) | 19,015 | 19,010 | 19,022 | 19,024 | 19,024 | |||||||||||||||
Average diluted shares (in thousands) | 19,045 | 19,036 | 19,033 | 19,032 | 19,026 | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME, Continued | ||||||||
(dollars in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
12/31/24 | 12/31/23 | |||||||
Interest and dividend income: | ||||||||
Interest and fees on loans | $ | 205,600 | 187,456 | |||||
Interest and dividends on securities available for sale: | ||||||||
U. S. government sponsored enterprises | 3,213 | 2,805 | ||||||
State and political subdivisions | 1 | 2 | ||||||
Mortgage-backed securities and collateralized mortgage | ||||||||
obligations - residential | 5,760 | 6,146 | ||||||
Corporate bonds | 1,557 | 1,987 | ||||||
Small Business Administration - guaranteed | ||||||||
participation securities | 368 | 437 | ||||||
Other securities | 13 | 10 | ||||||
Total interest and dividends on securities available for sale | 10,912 | 11,387 | ||||||
Interest on held to maturity securities: | ||||||||
Mortgage-backed securities-residential | 254 | 296 | ||||||
Total interest on held to maturity securities | 254 | 296 | ||||||
Federal Home Loan Bank stock | 604 | 500 | ||||||
Interest on federal funds sold and other short-term investments | 25,946 | 26,567 | ||||||
Total interest income | 243,316 | 226,206 | ||||||
Interest expense: | ||||||||
Interest on deposits: | ||||||||
Interest-bearing checking | 1,236 | 382 | ||||||
Savings | 2,876 | 2,531 | ||||||
Money market deposit accounts | 8,748 | 7,454 | ||||||
Time deposits | 77,726 | 42,985 | ||||||
Interest on short-term borrowings | 791 | 1,009 | ||||||
Total interest expense | 91,377 | 54,361 | ||||||
Net interest income | 151,939 | 171,845 | ||||||
Less: Provision for credit losses | 2,000 | 1,250 | ||||||
Net interest income after provision for credit losses | 149,939 | 170,595 | ||||||
Noninterest income: | ||||||||
Trustco Financial Services income | 7,247 | 6,425 | ||||||
Fees for services to customers | 9,852 | 10,648 | ||||||
Net gains on equity securities | 1,383 | - | ||||||
Other | 1,352 | 1,242 | ||||||
Total noninterest income | 19,834 | 18,315 | ||||||
Noninterest expenses: | ||||||||
Salaries and employee benefits | 48,149 | 51,242 | ||||||
Net occupancy expense | 17,820 | 17,427 | ||||||
Equipment expense | 7,889 | 7,610 | ||||||
Professional services | 6,675 | 6,245 | ||||||
Outsourced services | 10,858 | 10,039 | ||||||
Advertising expense | 1,803 | 1,878 | ||||||
FDIC and other insurance | 4,116 | 4,300 | ||||||
Other real estate expense, net | 770 | 524 | ||||||
Other | 7,647 | 12,032 | ||||||
Total noninterest expenses | 105,727 | 111,297 | ||||||
Income before taxes | 64,046 | 77,613 | ||||||
Income taxes | 15,213 | 18,967 | ||||||
Net income | $ | 48,833 | 58,646 | |||||
Net income per common share: | ||||||||
- Basic | $ | 2.57 | 3.08 | |||||
- Diluted | 2.57 | 3.08 | ||||||
Average basic shares (in thousands) | 19,018 | 19,024 | ||||||
Average diluted shares (in thousands) | 19,037 | 19,025 | ||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||||||
ASSETS: | ||||||||||||||||||||
Cash and due from banks | $ | 47,364 | $ | 49,659 | $ | 42,193 | $ | 44,868 | $ | 49,274 | ||||||||||
Federal funds sold and other short term investments | 594,448 | 473,306 | 493,920 | 564,815 | 528,730 | |||||||||||||||
Total cash and cash equivalents | 641,812 | 522,965 | 536,113 | 609,683 | 578,004 | |||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U. S. government sponsored enterprises | 85,617 | 90,588 | 106,796 | 128,854 | 118,668 | |||||||||||||||
States and political subdivisions | 18 | 26 | 26 | 26 | 26 | |||||||||||||||
Mortgage-backed securities and collateralized mortgage | ||||||||||||||||||||
obligations - residential | 213,128 | 222,841 | 218,311 | 227,078 | 237,677 | |||||||||||||||
Small Business Administration - guaranteed | ||||||||||||||||||||
participation securities | 14,141 | 15,171 | 15,592 | 16,260 | 17,186 | |||||||||||||||
Corporate bonds | 44,581 | 54,327 | 53,764 | 53,341 | 78,052 | |||||||||||||||
Other securities | 700 | 701 | 688 | 682 | 680 | |||||||||||||||
Total securities available for sale | 358,185 | 383,654 | 395,177 | 426,241 | 452,289 | |||||||||||||||
Held to maturity securities: | ||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage | ||||||||||||||||||||
obligations-residential | 5,365 | 5,636 | 5,921 | 6,206 | 6,458 | |||||||||||||||
Total held to maturity securities | 5,365 | 5,636 | 5,921 | 6,206 | 6,458 | |||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 6,507 | 6,507 | 6,507 | 6,203 | 6,203 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 286,857 | 280,261 | 282,441 | 279,092 | 273,515 | |||||||||||||||
Residential mortgage loans | 4,388,302 | 4,382,674 | 4,370,640 | 4,354,369 | 4,365,063 | |||||||||||||||
Home equity line of credit | 409,261 | 393,418 | 370,063 | 355,879 | 347,415 | |||||||||||||||
Installment loans | 13,638 | 14,503 | 15,168 | 16,166 | 16,886 | |||||||||||||||
Loans, net of deferred net costs | 5,098,058 | 5,070,856 | 5,038,312 | 5,005,506 | 5,002,879 | |||||||||||||||
Less: Allowance for credit losses on loans | 50,248 | 49,950 | 49,772 | 49,220 | 48,578 | |||||||||||||||
Net loans | 5,047,810 | 5,020,906 | 4,988,540 | 4,956,286 | 4,954,301 | |||||||||||||||
Bank premises and equipment, net | 33,782 | 33,324 | 33,466 | 33,423 | 34,007 | |||||||||||||||
Operating lease right-of-use assets | 36,627 | 37,958 | 38,376 | 39,647 | 40,542 | |||||||||||||||
Other assets | 108,656 | 98,730 | 102,544 | 101,881 | 96,387 | |||||||||||||||
Total assets | $ | 6,238,744 | $ | 6,109,680 | $ | 6,106,644 | $ | 6,179,570 | $ | 6,168,191 | ||||||||||
LIABILITIES: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 762,101 | $ | 753,878 | $ | 745,227 | $ | 742,997 | $ | 754,532 | ||||||||||
Interest-bearing checking | 1,027,540 | 988,527 | 1,029,606 | 1,020,136 | 1,015,213 | |||||||||||||||
Savings accounts | 1,086,534 | 1,092,038 | 1,144,427 | 1,155,517 | 1,179,241 | |||||||||||||||
Money market deposit accounts | 465,049 | 477,113 | 517,445 | 532,611 | 565,767 | |||||||||||||||
Time deposits | 2,049,759 | 1,952,635 | 1,840,262 | 1,903,908 | 1,836,024 | |||||||||||||||
Total deposits | 5,390,983 | 5,264,191 | 5,276,967 | 5,355,169 | 5,350,777 | |||||||||||||||
Short-term borrowings | 84,781 | 91,450 | 89,720 | 94,374 | 88,990 | |||||||||||||||
Operating lease liabilities | 40,159 | 41,469 | 42,026 | 43,438 | 44,471 | |||||||||||||||
Accrued expenses and other liabilities | 46,478 | 43,549 | 42,763 | 37,399 | 38,668 | |||||||||||||||
Total liabilities | 5,562,401 | 5,440,659 | 5,451,476 | 5,530,380 | 5,522,906 | |||||||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||||||||||
Capital stock | 20,097 | 20,058 | 20,058 | 20,058 | 20,058 | |||||||||||||||
Surplus | 258,874 | 257,644 | 257,490 | 257,335 | 257,181 | |||||||||||||||
Undivided profits | 446,503 | 442,079 | 436,048 | 430,346 | 425,069 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (3,861 | ) | (6,600 | ) | (14,268 | ) | (14,763 | ) | (13,237 | ) | ||||||||||
Treasury stock at cost | (45,270 | ) | (44,160 | ) | (44,160 | ) | (43,786 | ) | (43,786 | ) | ||||||||||
Total shareholders' equity | 676,343 | 669,021 | 655,168 | 649,190 | 645,285 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 6,238,744 | $ | 6,109,680 | $ | 6,106,644 | $ | 6,179,570 | $ | 6,168,191 | ||||||||||
Outstanding shares (in thousands) | 19,020 | 19,010 | 19,010 | 19,024 | 19,024 | |||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||
Nonperforming Assets | ||||||||||||||||
New York and other states* | ||||||||||||||||
Loans in nonaccrual status: | ||||||||||||||||
Commercial | $ | 343 | $ | 466 | $ | 741 | $ | 532 | $ | 536 | ||||||
Real estate mortgage - 1 to 4 family | 14,671 | 15,320 | 14,992 | 14,359 | 14,375 | |||||||||||
Installment | 108 | 163 | 131 | 149 | 151 | |||||||||||
Total non-accrual loans | 15,122 | 15,949 | 15,864 | 15,040 | 15,062 | |||||||||||
Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | 3 | |||||||||||
Total nonperforming loans | 15,122 | 15,949 | 15,864 | 15,040 | 15,065 | |||||||||||
Other real estate owned | 2,175 | 2,503 | 2,334 | 2,334 | 194 | |||||||||||
Total nonperforming assets | $ | 17,297 | $ | 18,452 | $ | 18,198 | $ | 17,374 | $ | 15,259 | ||||||
Florida | ||||||||||||||||
Loans in nonaccrual status: | ||||||||||||||||
Commercial | $ | - | $ | 314 | $ | 314 | $ | 314 | $ | 314 | ||||||
Real estate mortgage - 1 to 4 family | 3,656 | 3,176 | 2,985 | 2,921 | 2,272 | |||||||||||
Installment | 22 | 5 | 22 | - | 15 | |||||||||||
Total non-accrual loans | 3,678 | 3,495 | 3,321 | 3,235 | 2,601 | |||||||||||
Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | - | |||||||||||
Total nonperforming loans | 3,678 | 3,495 | 3,321 | 3,235 | 2,601 | |||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||
Total nonperforming assets | $ | 3,678 | $ | 3,495 | $ | 3,321 | $ | 3,235 | $ | 2,601 | ||||||
Total | ||||||||||||||||
Loans in nonaccrual status: | ||||||||||||||||
Commercial | $ | 343 | $ | 780 | $ | 1,055 | $ | 846 | $ | 850 | ||||||
Real estate mortgage - 1 to 4 family | 18,327 | 18,496 | 17,977 | 17,280 | 16,647 | |||||||||||
Installment | 130 | 168 | 153 | 149 | 166 | |||||||||||
Total non-accrual loans | 18,800 | 19,444 | 19,185 | 18,275 | 17,663 | |||||||||||
Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | 3 | |||||||||||
Total nonperforming loans | 18,800 | 19,444 | 19,185 | 18,275 | 17,666 | |||||||||||
Other real estate owned | 2,175 | 2,503 | 2,334 | 2,334 | 194 | |||||||||||
Total nonperforming assets | $ | 20,975 | $ | 21,947 | $ | 21,519 | $ | 20,609 | $ | 17,860 | ||||||
Quarterly Net Chargeoffs (Recoveries) | ||||||||||||||||
New York and other states* | ||||||||||||||||
Commercial | $ | 62 | $ | 65 | $ | - | $ | - | $ | - | ||||||
Real estate mortgage - 1 to 4 family | (316 | ) | 104 | (74 | ) | (78 | ) | 219 | ||||||||
Installment | 41 | 11 | (2 | ) | 36 | 23 | ||||||||||
Total net (recoveries) chargeoffs | $ | (213 | ) | $ | 180 | $ | (76 | ) | $ | (42 | ) | $ | 242 | |||
Florida | ||||||||||||||||
Commercial | $ | 314 | $ | - | $ | - | $ | - | $ | - | ||||||
Real estate mortgage - 1 to 4 family | - | - | 17 | - | - | |||||||||||
Installment | 1 | 42 | 7 | - | 6 | |||||||||||
Total net chargeoffs | $ | 315 | $ | 42 | $ | 24 | $ | - | $ | 6 | ||||||
Total | ||||||||||||||||
Commercial | $ | 376 | $ | 65 | $ | - | $ | - | $ | - | ||||||
Real estate mortgage - 1 to 4 family | (316 | ) | 104 | (57 | ) | (78 | ) | 219 | ||||||||
Installment | 42 | 53 | 5 | 36 | 29 | |||||||||||
Total net chargeoffs (recoveries) | $ | 102 | $ | 222 | $ | (52 | ) | $ | (42 | ) | $ | 248 | ||||
Asset Quality Ratios | ||||||||||||||||
Total nonperforming loans (1) | $ | 18,800 | $ | 19,444 | $ | 19,185 | $ | 18,275 | $ | 17,666 | ||||||
Total nonperforming assets (1) | 20,975 | 21,947 | 21,519 | 20,609 | 17,860 | |||||||||||
Total net chargeoffs (recoveries) (2) | 102 | 222 | (52 | ) | (42 | ) | 248 | |||||||||
Allowance for credit losses on loans (1) | 50,248 | 49,950 | 49,772 | 49,220 | 48,578 | |||||||||||
Nonperforming loans to total loans | 0.37 | % | 0.38 | % | 0.38 | % | 0.37 | % | 0.35 | % | ||||||
Nonperforming assets to total assets | 0.34 | % | 0.36 | % | 0.35 | % | 0.33 | % | 0.29 | % | ||||||
Allowance for credit losses on loans to total loans | 0.99 | % | 0.99 | % | 0.99 | % | 0.98 | % | 0.97 | % | ||||||
Coverage ratio (1) | 267.3 | % | 256.9 | % | 259.4 | % | 269.3 | % | 275.0 | % | ||||||
Annualized net (recoveries) chargeoffs to average loans (2) | 0.01 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.02 | % | ||||||
Allowance for credit losses on loans to annualized net chargeoffs (2) | 123.2x | 56.3x | N/A | N/A | 49.0x | |||||||||||
* 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 | ||||||||||||||||
December 31, 2024 | December 31, 2023 | |||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||
Balance | Rate | Balance | Rate | |||||||||||||||
Assets | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||
U. S. government sponsored enterprises | $ | 88,125 | $ | 680 | 3.09 | % | $ | 125,572 | $ | 750 | 2.39 | % | ||||||
Mortgage backed securities and collateralized mortgage | ||||||||||||||||||
obligations - residential | 238,771 | 1,418 | 2.36 | 267,341 | 1,533 | 2.28 | ||||||||||||
State and political subdivisions | 23 | - | 6.35 | 32 | 1 | 6.62 | ||||||||||||
Corporate bonds | 50,025 | 358 | 2.86 | 80,207 | 477 | 2.38 | ||||||||||||
Small Business Administration - guaranteed | ||||||||||||||||||
participation securities | 15,693 | 84 | 2.15 | 18,990 | 102 | 2.15 | ||||||||||||
Other | 700 | 6 | 3.43 | 689 | 3 | 1.74 | ||||||||||||
Total securities available for sale | 393,337 | 2,546 | 2.59 | 492,831 | 2,866 | 2.33 | ||||||||||||
Federal funds sold and other short-term Investments | 504,458 | 6,128 | 4.83 | 461,889 | 6,354 | 5.46 | ||||||||||||
Held to maturity securities: | ||||||||||||||||||
Mortgage backed securities and collateralized mortgage | ||||||||||||||||||
obligations - residential | 5,501 | 59 | 4.31 | 6,591 | 70 | 4.25 | ||||||||||||
Total held to maturity securities | 5,501 | 59 | 4.31 | 6,591 | 70 | 4.25 | ||||||||||||
Federal Home Loan Bank stock | 6,507 | 152 | 9.34 | 6,203 | 149 | 9.61 | ||||||||||||
Commercial loans | 285,303 | 3,869 | 5.42 | 273,622 | 3,589 | 5.25 | ||||||||||||
Residential mortgage loans | 4,388,567 | 42,486 | 3.87 | 4,353,660 | 40,009 | 3.68 | ||||||||||||
Home equity lines of credit | 401,636 | 6,422 | 6.36 | 340,670 | 5,338 | 6.22 | ||||||||||||
Installment loans | 13,741 | 247 | 7.14 | 16,359 | 265 | 6.44 | ||||||||||||
Loans, net of unearned income | 5,089,247 | 53,024 | 4.16 | 4,984,311 | 49,201 | 3.94 | ||||||||||||
Total interest earning assets | 5,999,050 | $ | 61,909 | 4.12 | 5,951,825 | $ | 58,640 | 3.93 | ||||||||||
Allowance for credit losses on loans | (50,342 | ) | (47,458 | ) | ||||||||||||||
Cash & non-interest earning assets | 190,341 | 169,791 | ||||||||||||||||
Total assets | $ | 6,139,049 | $ | 6,074,158 | ||||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Interest bearing checking accounts | $ | 994,786 | $ | 397 | 0.16 | % | $ | 1,004,744 | $ | 165 | 0.07 | % | ||||||
Money market accounts | 469,784 | 2,024 | 1.71 | 586,025 | 2,500 | 1.69 | ||||||||||||
Savings | 1,085,952 | 719 | 0.26 | 1,205,388 | 707 | 0.23 | ||||||||||||
Time deposits | 2,000,563 | 19,680 | 3.91 | 1,720,871 | 16,460 | 3.79 | ||||||||||||
Total interest bearing deposits | 4,551,085 | 22,820 | 1.99 | 4,517,028 | 19,832 | 1.74 | ||||||||||||
Short-term borrowings | 84,136 | 187 | 0.88 | 92,529 | 201 | 0.86 | ||||||||||||
Total interest bearing liabilities | 4,635,221 | $ | 23,007 | 1.97 | 4,609,557 | $ | 20,033 | 1.72 | ||||||||||
Demand deposits | 751,747 | 754,078 | ||||||||||||||||
Other liabilities | 82,738 | 81,297 | ||||||||||||||||
Shareholders' equity | 669,343 | 629,226 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,139,049 | $ | 6,074,158 | ||||||||||||||
Net interest income | $ | 38,902 | $ | 38,607 | ||||||||||||||
Net interest spread | 2.15 | % | 2.21 | % | ||||||||||||||
Net interest margin (net interest income to | ||||||||||||||||||
total interest earning assets) | 2.60 | % | 2.60 | % | ||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY - | ||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
(Unaudited) | Year Ended | Year Ended | ||||||||||||||||
December 31, 2024 | December 31, 2023 | |||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||
Balance | Rate | Balance | Rate | |||||||||||||||
Assets | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||
U. S. government sponsored enterprises | $ | 105,729 | 3,213 | 3.04 | % | $ | 121,574 | 2,805 | 2.31 | % | ||||||||
Mortgage backed securities and collateralized mortgage | ||||||||||||||||||
obligations - residential | 247,466 | 5,760 | 2.33 | 275,565 | 6,146 | 2.23 | ||||||||||||
State and political subdivisions | 25 | 1 | 6.69 | 33 | 2 | 6.71 | ||||||||||||
Corporate bonds | 58,447 | 1,557 | 2.66 | 82,865 | 1,987 | 2.40 | ||||||||||||
Small Business Administration - guaranteed | ||||||||||||||||||
participation securities | 17,003 | 368 | 2.17 | 20,410 | 437 | 2.14 | ||||||||||||
Other | 698 | 13 | 1.86 | 686 | 10 | 1.46 | ||||||||||||
Total securities available for sale | 429,368 | 10,912 | 2.54 | 501,133 | 11,387 | 2.27 | ||||||||||||
Federal funds sold and other short-term Investments | 493,546 | 25,946 | 5.26 | 521,021 | 26,567 | 5.10 | ||||||||||||
Held to maturity securities: | ||||||||||||||||||
Mortgage backed securities and collateralized mortgage | ||||||||||||||||||
obligations - residential | 5,916 | 254 | 4.29 | 7,053 | 296 | 4.20 | ||||||||||||
Total held to maturity securities | 5,916 | 254 | 4.29 | 7,053 | 296 | 4.20 | ||||||||||||
Federal Home Loan Bank stock | 6,389 | 604 | 9.45 | 6,018 | 500 | 8.31 | ||||||||||||
Commercial loans | 280,566 | 15,101 | 5.38 | 255,666 | 13,306 | 5.20 | ||||||||||||
Residential mortgage loans | 4,370,582 | 165,533 | 3.79 | 4,290,241 | 154,235 | 3.60 | ||||||||||||
Home equity lines of credit | 374,841 | 23,944 | 6.39 | 313,914 | 18,936 | 6.03 | ||||||||||||
Installment loans | 14,926 | 1,022 | 6.85 | 15,345 | 979 | 6.38 | ||||||||||||
Loans, net of unearned income | 5,040,915 | 205,600 | 4.08 | 4,875,166 | 187,456 | 3.84 | ||||||||||||
Total interest earning assets | 5,976,134 | 243,316 | 4.07 | 5,910,391 | 226,206 | 3.83 | ||||||||||||
Allowance for credit losses on loans | (49,648 | ) | (46,971 | ) | ||||||||||||||
Cash & non-interest earning assets | 188,748 | 172,641 | ||||||||||||||||
Total assets | $ | 6,115,234 | $ | 6,036,061 | ||||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Interest bearing checking accounts | $ | 998,501 | 1,236 | 0.12 | % | $ | 1,067,972 | 382 | 0.04 | % | ||||||||
Money market accounts | 509,409 | 8,748 | 1.72 | 606,230 | 7,454 | 1.23 | ||||||||||||
Savings | 1,128,190 | 2,876 | 0.25 | 1,323,995 | 2,531 | 0.19 | ||||||||||||
Time deposits | 1,911,116 | 77,726 | 4.07 | 1,437,336 | 42,985 | 2.99 | ||||||||||||
Total interest bearing deposits | 4,547,216 | 90,586 | 1.99 | 4,435,533 | 53,352 | 1.20 | ||||||||||||
Short-term borrowings | 89,707 | 791 | 0.88 | 114,639 | 1,009 | 0.88 | ||||||||||||
Total interest bearing liabilities | 4,636,923 | 91,377 | 1.97 | 4,550,172 | 54,361 | 1.19 | ||||||||||||
Demand deposits | 738,816 | 784,021 | ||||||||||||||||
Other liabilities | 82,398 | 81,656 | ||||||||||||||||
Shareholders' equity | 657,097 | 620,212 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,115,234 | $ | 6,036,061 | ||||||||||||||
Net interest income | 151,939 | 171,845 | ||||||||||||||||
Net interest spread | 2.10 | % | 2.64 | % | ||||||||||||||
Net interest margin (net interest income to | ||||||||||||||||||
total interest earning assets) | 2.54 | % | 2.91 | % | ||||||||||||||
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.
Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets. Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets. We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.
The efficiency ratio and adjusted efficiency ratio are 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, strategic branch closing costs, and a non-recurring expense related to the settlement of a class action lawsuit, by net interest income and total noninterest income as determined under GAAP, excluding gain/loss on the disposal of assets from strategic branch closures from this calculation and net gains on equity securities. 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. We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.
NON-GAAP FINANCIAL MEASURES RECONCILIATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
12/31/2024 | 9/30/2024 | 12/31/2023 | ||||||||||||||||||
Tangible Book Value Per Share | ||||||||||||||||||||
Equity (GAAP) | $ | 676,343 | $ | 669,021 | $ | 645,285 | ||||||||||||||
Less: Intangible assets | 553 | 553 | 553 | |||||||||||||||||
Tangible equity (Non-GAAP) | $ | 675,790 | $ | 668,468 | $ | 644,732 | ||||||||||||||
Shares outstanding | 19,020 | 19,010 | 19,024 | |||||||||||||||||
Tangible book value per share | 35.53 | 35.16 | 33.89 | |||||||||||||||||
Book value per share | 35.56 | 35.19 | 33.92 | |||||||||||||||||
Tangible Equity to Tangible Assets | ||||||||||||||||||||
Total Assets (GAAP) | $ | 6,238,744 | $ | 6,109,680 | $ | 6,168,191 | ||||||||||||||
Less: Intangible assets | 553 | 553 | 553 | |||||||||||||||||
Tangible assets (Non-GAAP) | $ | 6,238,191 | $ | 6,109,127 | $ | 6,167,638 | ||||||||||||||
Tangible Equity to Tangible Assets (Non-GAAP) | 10.83 | % | 10.94 | % | 10.45 | % | ||||||||||||||
Equity to Assets (GAAP) | 10.84 | % | 10.95 | % | 10.46 | % | ||||||||||||||
Three months ended | Year Ended | |||||||||||||||||||
Efficiency and Adjusted Efficiency Ratios | 12/31/2024 | 9/30/2024 | 6/30/2024 | 12/31/2023 | 12/31/2024 | 12/31/2023 | ||||||||||||||
Net interest income (GAAP) | A | $ | 38,902 | $ | 38,671 | $ | 37,788 | $ | 38,607 | $ | 151,939 | $ | 171,845 | |||||||
Non-interest income (GAAP) | B | 4,409 | 4,931 | 5,651 | 4,474 | 19,834 | 18,315 | |||||||||||||
Add: Non-recurring loss | C | - | - | - | 101 | - | 101 | |||||||||||||
Less: Net gains on equity securities | D | - | 23 | 1,360 | - | 1,383 | - | |||||||||||||
Revenue used for efficiency ratio (Non-GAAP) | E | $ | 43,311 | $ | 43,579 | $ | 42,079 | $ | 43,182 | $ | 170,390 | $ | 190,261 | |||||||
Total noninterest expense (GAAP) | F | $ | 28,165 | $ | 26,200 | $ | 26,459 | $ | 28,831 | $ | 105,727 | $ | 111,297 | |||||||
Less: Branch closure expense | G | - | - | - | 114 | - | 114 | |||||||||||||
Less: Non-recurring expenses | H | - | - | - | 2,750 | - | 2,750 | |||||||||||||
Less: Other real estate expense (income), net | I | 476 | 204 | 16 | (12 | ) | 770 | 524 | ||||||||||||
Expense used for efficiency ratio (Non-GAAP) | J | $ | 27,689 | $ | 25,996 | $ | 26,443 | $ | 25,979 | $ | 104,957 | $ | 107,909 | |||||||
Efficiency Ratio | (F)/(A+B) | 65.03 | % | 60.09 | % | 60.91 | % | 66.92 | % | 61.55 | % | 58.53 | % | |||||||
Adjusted Efficiency Ratio | J/E | 63.93 | % | 59.65 | % | 62.84 | % | 60.16 | % | 61.60 | % | 56.72 | % | |||||||
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