• Net Income: $14.3 million, an increase of 17.7% over the prior year quarter.

• Earnings Per Share (EPS): $0.75, up 27% year over year.

• Return on Average Assets: 0.93%, up 27% year over year.

• Return on Average Equity: 8.49%, up 27% year over year.

• Interest Margin: 2.64%.

• Consolidated Equity to Assets Ratio: 10.85%, up 3% year over year.

• Book Value Per Share: $36.16, up 6% from $34.12 a year earlier.

• Commercial Lending: Up 8%, totaling over $300 million.

• Total Loans: Increased by over $100 million from the first quarter of last year.

• Average Loans: Grew 2.1% or $104.7 million to $5.1 billion.

• Home Equity Lines of Credit: Increased by $61 million or 17.3% year over year.

• Residential Real Estate Portfolio: Increased by $26.2 million.

• Average Commercial Loans: Increased by $20.7 million or 7.5% year over year.

• Net Interest Income: $40.4 million, an increase of $3.8 million or 10.4% year over year.

• Non-Interest Income from Wealth Management: Increased by 16.7% or $2.1 million.

• Non-Performing Loans to Total Loans: 0.37%, remained flat year over year.

• Allowance for Credit Losses: $50.6 million with a coverage ratio of 270%.

• Warning! GuruFocus has detected 5 Warning Sign with PNR.

Release Date: April 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) reported a strong start to 2025 with significant growth in deposits, particularly in low-cost core and business accounts.

• Commercial lending increased by 8%, with total commercial loans exceeding $300 million.

• The bank's interest margin improved to 2.64%, with earnings per share, return on average assets, and return on average equity all up 27%.

• Trustco Bank Corp N Y (NASDAQ:TRST) announced a stock repurchase program of up to 1 million shares, enhancing shareholder value.

• Non-performing loans remained low at 0.37%, indicating strong asset quality and stability.

Negative Points

• The cost of non-interest expenses increased by $1.4 million, primarily due to higher costs in salaries, employee benefits, and professional services.

• Despite the strong performance, the bank operates in a complex economic environment, which may pose challenges moving forward.

• The bank's interest income growth was partially offset by a decrease in the cost of interest-bearing liabilities.

• Home price trends in the bank's markets are stable but not increasing, which may limit growth in residential lending.

• The bank's previous share repurchase plan was not executed, raising questions about the execution of the current 5% repurchase plan.