Trustco Bank Corp N Y (TRST) Q3 2024 Earnings Call Highlights: Record Loan Growth and Improved ...

In This Article:

  • Net Income: $12.9 million, an increase of 2.6% over the prior quarter.

  • Return on Average Assets: 0.84%.

  • Return on Average Equity: 7.74%.

  • Consolidated Equity to Assets Ratio: 10.95% for Q3 2024, up from 10.31% in Q3 2023.

  • Book Value Per Share: $35.19, up 7.3% from $32.80 a year earlier.

  • Total Loans: Nearly $5.1 billion, an all-time high.

  • Average Loans Growth: 2.6% or $127 million to $5 billion from Q3 2023.

  • Residential Real Estate Portfolio Growth: $50.4 million or 1.2% in Q3 2024 over Q3 2023.

  • Home Equity Lines of Credit Growth: $60 million or 18.7% over the same period in 2023.

  • Average Commercial Loans Growth: $18.1 million or 6.9% over the same period in 2023.

  • Total Deposits: $5.3 billion at the end of the quarter.

  • Net Interest Income: $38.7 million for Q3 2024, an increase of $883,000 or 2.3% compared to the prior quarter.

  • Net Interest Margin: 2.61%, up eight basis points from the second quarter of 2024.

  • Yield on Interest Earning Assets: 4.11%, up five basis points from 4.06% in Q2 2024.

  • Cost of Interest Rate Liability: Decreased to 1.94% in Q3 2024 from 1.97% in Q2 2024.

  • Assets Under Management: $1.3 billion as of September 30, 2024.

  • Non-Interest Expense: $26 million, down $447,000 from the prior quarter.

  • Non-Performing Loans: 0.38% of total loans, steady over the quarter.

  • Allowance for Loan Losses: $50 million with a coverage ratio of 257%.

Release Date: October 22, 2024

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 net income of $12.9 million for the third quarter, marking a 2.6% increase over the prior quarter.

  • The bank achieved an increase in net interest margin over the quarter, driven by better interest rates on new loans and controlled expenses.

  • Total loans reached an all-time high of nearly $5.1 billion, demonstrating strong loan portfolio growth.

  • Credit quality remains strong with non-performing loans steady at 0.38% of total loans, reflecting high underwriting standards.

  • The wealth management division continues to be a significant source of non-interest income, with $1.3 billion in assets under management.

Negative Points

  • The bank's growth strategy did not include any major breakthroughs, likened to hitting singles and doubles rather than home runs.

  • Installment loans decreased by 9.5% over the same period in 2023, indicating a decline in this segment.

  • Non-performing assets increased slightly to $21.9 million from $19.1 million a year ago.

  • The cost of interest rate liabilities remains relatively high, although there was a slight decrease from the previous quarter.

  • The bank's branch network has decreased year over year, which may impact customer reach and service.

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