In This Article:
-
Net Income: $11.3 million for Q4 2024, a 14.6% increase over the prior year quarter.
-
Return on Average Assets: 0.73% for Q4 2024.
-
Return on Average Equity: 6.70% for Q4 2024.
-
Equity to Assets Ratio: 10.84% for Q4 2024, up from 10.46% in Q4 2023.
-
Book Value Per Share: $35.56 as of December 31, 2024, up 4.8% from $33.92 a year earlier.
-
Average Loans: $5.1 billion for Q4 2024, a 2.1% increase from Q4 2023.
-
Home Equity Lines of Credit Growth: Increased by $61 million or 17.9% in Q4 2024 over the same period in 2023.
-
Net Interest Income: $38.9 million for Q4 2024, an increase of $231,000 compared to the prior quarter.
-
Net Interest Margin: 2.60% for Q4 2024, down 1 basis point from the prior quarter.
-
Total Deposits: $5.4 billion at the end of Q4 2024, up $127 million compared to the prior quarter.
-
Non-Performing Loans: $18.8 million at the end of Q4 2024, representing 0.37% of total loans.
-
Allowance for Credit Losses: $50.2 million at the end of Q4 2024, with a coverage ratio of 267%.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Trustco Bank Corp N Y (NASDAQ:TRST) achieved a net income of $48.8 million for 2024, reflecting strong financial performance.
-
The bank's efficiency ratio improved to 61.5%, indicating effective cost management.
-
Home equity lending saw significant growth, surpassing purchase mortgage volume, showcasing the bank's ability to leverage its branch network.
-
Trustco Bank Corp N Y (NASDAQ:TRST) remains well-capitalized with a capital ratio of 10.84%, positioning it strongly for future lending opportunities.
-
The bank's credit quality remains strong, with non-performing loans stable and net charge-offs at a low 0.01%.
Negative Points
-
Net interest margin decreased slightly to 2.60% in the fourth quarter of 2024, indicating pressure on profitability.
-
Non-interest expenses increased by $1.7 million from the prior quarter, driven by higher costs in equipment and outsourced services.
-
The cost of interest-bearing liabilities rose to 1.97% in the fourth quarter, reflecting increased funding costs.
-
Despite growth in deposits, the net interest income only saw a marginal increase of $231,000 compared to the prior quarter.
-
The bank's residential loan activity saw a decrease of over $21 million in the fourth quarter, indicating potential challenges in this segment.
Q & A Highlights
Q: How are you thinking about 2025 with the fixed-rate mortgage at 6.875%? Is it becoming more attractive? A: Robert McCormick, CEO: Optimism is returning to the real estate market. We are seeing more pre-approvals than in the past 18 months, suggesting a potential spring market. We are actively engaging with home shows and real estate brokers to capture purchase money mortgages. We are optimistic about both purchase money mortgages and non-trust refinances.