TrustCo Bank Corp NY reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance compared to the same periods in 2023.

For the three months ended September 30, 2024, total interest income increased to $61.1 million from $57.6 million in 2023, driven by higher interest income on loans, which rose to $52.1 million from $47.9 million. However, net interest income decreased to $38.7 million from $42.2 million, primarily due to increased interest expenses. The net interest margin also contracted to 2.61%, down 24 basis points year-over-year. The provision for credit losses rose to $500,000, reflecting loan growth, compared to $100,000 in the prior year.

Net income for the third quarter was $12.9 million, or $0.68 per diluted share, down from $14.7 million, or $0.77 per diluted share, in the same quarter of 2023. The return on average assets decreased to 0.84% from 0.96%, and return on average equity fell to 7.74% from 9.32%.

For the nine months ended September 30, 2024, net income totaled $37.6 million, down from $48.8 million in 2023, with diluted earnings per share decreasing from $2.57 to $1.97. The decline in net income was attributed to a $20.2 million decrease in net interest income, primarily due to increased interest expenses in the current rate environment. Noninterest income increased by $1.6 million, driven by higher financial services income and a gain from the conversion of Visa Class C common stock.

As of September 30, 2024, total assets were $6.1 billion, up from $6.0 billion a year earlier. Total deposits decreased to $5.3 billion from $5.4 billion, while total loans increased to $5.0 billion from $4.9 billion. The allowance for loan losses rose to $50 million, representing 0.99% of the loan portfolio.

TrustCo's capital ratios remained strong, with a Common Equity Tier 1 capital ratio of 18.55%, well above the regulatory minimum. The company declared a dividend of $0.36 per share for the third quarter, with a payout ratio of 53.16%.

Strategically, TrustCo has maintained a share repurchase program, authorizing the buyback of up to 200,000 shares, although no repurchases occurred in the third quarter. The company continues to focus on managing its loan portfolio, which is heavily concentrated in residential mortgages, primarily in New York and Florida.