TrustCo Bank Corp NY reported a solid Q4 2024, continuing a trend of improving profitability and strong capital that underpins a durable earnings trajectory. Net income for the quarter was $11.3 million, up 14.6% year over year, contributing to a 2024 full-year net income of $48.8 million reported by management. The quarter highlighted an overall balance sheet and funding position designed to support moderate loan growth and liquidity through a rising rate environment, with an efficiency ratio of 61.5% for the year and an equity-to-assets ratio of 10.84% in Q4 2024. Management emphasized disciplined balance sheet management and technology investments aimed at sustaining efficiency gains, while expanding into cannabis banking as a new growth channel within a risk-controlled framework.
The loan portfolio grew 2.1% year over year in Q4 2024 to $5.1 billion, led by home equity lending (HELOCs) up 17.9% year over year, and residential real estate up, with commercial loans also contributing modestly. The bank maintained strong credit quality, with non-performing loans at 0.37% of total loans and a robust allowance for credit losses at $50.2 million (coverage around 267%). Net charge-offs were negligible for the quarter, totaling $102 thousand, underscoring a conservative credit posture. Capital remains ample, deposits grew to $5.4 billion, and the balance sheet remains liquid, supported by an average overnight investment position of about $504 million. Management signaled readiness to lend in 2025, with a continued focus on traditional residential lending, selective CRE opportunities, and a strategic cannabis banking initiative aligned with the bank’s branch-network advantages.
Looking ahead, the management tone points to a potentially improving real estate cycle, with expectations for a “spring market” resurgence and continued deposit growth. However, net interest margin (NIM) has shown signs of stabilization rather than acceleration, as the company works to reprice CDs (current CD yields around 4.15% for six and nine months and 4.0% for 12 months) and navigate a flatter yield curve. The absence of formal quantitative forward guidance is balanced by a clear emphasis on disciplined cost control, ongoing technology investments, and a cautious but constructive growth plan for 2025.