TrustCo Bank Corp NY Q3 FY2025 earnings call

• TrustCo Bank Corp NY's mission is to deliver best loan and deposit products for home ownership with professional underwriting.
• Performance this quarter and year to date shows strong results with return on average assets up 21.4%, return on average equity up 20%, and efficiency ratio down almost 9%.
• Nonperforming loans to total loans improved by 5% over the quarter, coverage ratio over 280% (up 9% from third quarter last year).
• Repurchased 298,000 shares in 2025Q3, with 467,000 year to date and ability to repurchase another 533,000.
• Loan growth: average loans up 2.5% to $5.2 billion, home equity up 15.7%, residential real estate up 0.8%, commercial up 12.4%.
• Deposits up $217 million, net interest income up 11.5%, net interest margin up 18 basis points.
• Wealth management assets under management $1.25 billion, non-interest income from wealth management 41.9% of total non-interest income.

For the 2025Q3, average loans grew 2.5% or $125.9 million to $5.2 billion, an all-time high. The home equity credit lines portfolio increased by $59.9 million or 15.7%, the residential real estate portfolio increased $34 million, and commercial loans increased $34.6 million or 12.4%. Total deposits ended the quarter at $5.5 billion, up $217 million from the prior year quarter. Net interest income was $43.1 million for the 2025Q3, an increase of $4.4 million or 11.5% compared to the prior year quarter. Net interest margin was 2.79%, up 18 basis points. The wealth management division had approximately $1.25 billion of assets under management as of September 30, 2025, and non-interest income attributable to wealth management and financial services fees represent 41.9% of non-interest income.

• Anticipate completing currently authorized stock buyback and seek approval for further substantial repurchase.
• Expect meaningful net interest income upside for quarters to come, especially with CDs maturing and repricing opportunity.
• About $1 billion in CDs maturing over next 4-6 months, average rate on those is ~3.75%, expecting opportunity to reprice.

Q: Ian Lapey asks about net interest income upside, CDs maturing, and average rate on maturing CDs.

A: Robert J. McCormick says the highest rate offering is 4% for 3-month CD, ~$1 billion in CDs maturing over next 4-6 months with average rate of ~3.75%.

Q: Ian Lapey asks about recoveries and number of homes related.

A: Robert J. McCormick says ~$194,000 in recoveries relates to ~5 properties, including 1 commercial and 4 residential.

Q: Ian Lapey asks about branch expansion and Florida growth.

A: Robert J. McCormick mentions interest in Pasco County, Florida, and other infill locations in Florida, also opportunities in Downstate New York.