TRUSTCO BANK CORP N Y
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
TRST$57.30+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001140361-25-018154
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001140361-25-029804
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 139 current paragraphs.
67 unchanged; 48 reworded; 17 added; 4 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 21 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
The country has entered a period of heightened economic uncertainty as markets continue to adjust to rapidly evolving changes in tariff policies. Tariffs remain fluid, with the most recent deadline to negotiate trade agreements extended until August 1, 2025 for many countries and later for other countries. Tariffs have the potential to increase inflation, and it is unknown if that would have a transitory or longer lasting impact. The Federal Open Market Committee (“FOMC”) held the federal funds target rate range at 4.25%-4.50% following each of its five meetings to date in 2025. The FOMC stated at its most recent meeting on July 29-30, 2025 that uncertainty about the economic outlook remains elevated and that the committee was attentive to risks on both sides of its dual mandate.
Current report
On July 4, 2025, legislation referred to as “H.R. 1: One Big Beautiful Bill Act” (the “OBBBA”) was signed into law and, among other changes, will modify the tax year in which certain business deductions, primarily depreciation of capital asset additions, are allowed and therefore will influence the time within which income tax payments must be made. While our initial review of the OBBBA indicates the legislated changes will not significantly modify our future effective income tax rate, we will continue to monitor for further changes and evaluate the enacted provisions of the new law and potential impacts on our consolidated financial statements as appropriate.
Current report
Visa Exchange Offer
Current report
During the second quarter of 2024, Visa Inc. accepted the Company’s tender of its 6,528 shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock. As a result of the exchange, the Company marked its Visa Class C common stock to fair value and recorded a gain of $1.4 million based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock on June 28, 2024 of $262.47 per share. In 2024, Company’s Visa Class C shares were marked to fair value on a recurring basis using the Visa Class A shares as evidence of orderly transactions between market participants for similar securities issued by Visa. The Company originally obtained the shares in 2008. The carrying value of the Visa Class B-2 shares is nominal as of June 30, 2025.
Current report
Compared to the second quarter of 2024, the average balance of residential mortgage loans, home equity credit lines, and commercial loans, all increased, while the average balance of installment loans decreased. We believe that the upward trend in average balances of residential mortgage loans, home equity credit lines and commercial loans reflects improving economic confidence among borrowers, strong credit quality, and the Bank’s focus on relationship lending.
Current report
Net interest income increased by $7.8 million to $82.1 million in the first six months of 2025 compared to the same period in 2024. The net interest spread was up 19 basis points to 2.24% in the first six months of 2025 compared to the same period in 2024. Net interest margin increased 20 basis points to 2.68% for the first six months of 2025 compared to the same period in 2024.
Current report
Total noninterest income for the second quarter of 2025 was $4.9 million compared to $5.7 million for the same period in the prior year. The decrease is primarily the result of an unrealized gain of $1.4 million recorded on the Visa Class C Common stock exchange in the second quarter of 2024. Fees for services to customers was also down $133 thousand in the second quarter of 2025 compared to the same period in the prior year. This was offset by financial services income and other income increasing $209 thousand and $485 thousand, respectively, for the second quarter of 2025 compared to the same period in the prior year. The fair value of assets under management was $1.2 billion at both June 30, 2025 and December 31, 2024, and $1.1 billion at June 30, 2024.
Current report
For the six months ended June 30, 2025 total noninterest income was $9.8 million, down $668 thousand compared to the prior year period. The decrease is also primarily the result the unrealized gain of $1.4 million recorded on the Visa Class C Common stock exchange during the six months ended June 30, 2024. Fees for services to customers was also down $233 thousand for the six months ended June 30, 2025 compared to the same period in the prior year. This was offset by financial services income and other income increasing $513 thousand and $412 thousand, respectively, for the first six months of 2025 compared to the same period in the prior year.
Current report
Total noninterest expenses were $26.2 million for the three-months ended June 30, 2025, compared to $26.5 million for the three-months ended June 30, 2024. Significant changes included a $644 thousand decrease in salaries and employee benefits primarily as a result of a decrease in benefits. Full time equivalent headcount was 753 as of June 30, 2024, 737 as of December 31, 2024, and 733 as of June 30, 2025. Changes in headcount represent normal fluctuations. Additionally, we had a $295 thousand decrease in outsourced services, and a $367 thousand decrease in other expenses, partially offset by an increase of $316 thousand in professional services, a $339 thousand increase in FDIC and other insurance, and a $506 thousand increase in other real estate expense, net.
Current report
Total noninterest expenses were $52.6 million for the six-months ended June 30, 2025, compared to $51.4 million for the six-months ended June 30, 2024. Significant changes included an increase of $582 thousand in professional services, a $433 thousand increase in FDIC and other insurance and a $460 thousand increase in other real estate expense, net, partially offset by a $177 thousand decrease in salaries and employee benefits and a $209 thousand decrease in advertising expense.
Current report
Index
Current report
Index
Current report
Index
Current report
Management's Discussion and Analysis
Current report
STATISTICAL DISCLOSURE
Current report
INTEREST RATES AND INTEREST DIFFERENTIAL
Removed paragraphs (4)
Previous report
We are entering a period of heightened economic uncertainty as markets have been adjusting to changes in tariff policies. Tariffs have the potential to increase inflation, and it is unknown if that would have a transitory or longer lasting impact. On the national employment side, the data has held up well, although unemployment has ticked up modestly to 4.2%. Federal Reserve speakers, including Chairman Powell, have stated they can be patient at current inflation and unemployment levels to see how policy changes start to impact the data. Economic data remains mixed. Manufacturing continues to contract while the services sector expands, albeit at a slower pace than the previous two quarters. U.S. consumer spending appears to be slowing down. Focusing on backwards looking data, there are signs of a slowdown. Coupling that with forward looking expectations based on the uncertainty from tariffs, economists are evaluating the possibility of the U.S. entering a recession in the second half of 2025.
Previous report
Total noninterest income for the first quarter of 2025 and 2024 was $5.0 million and $4.8 million, respectively. The increase over the same period in the prior year was primarily related to an increase of $304 thousand in Trustco financial services income in the first quarter of 2025 as compared to the year-ago period, primarily as a result of higher market values of assets under management. The fair value of assets under management was $1.3 billion as of March 31, 2025, $1.2 billion as of December 31, 2024 and $1.0 billion as of March 31, 2024.
Previous report
Total noninterest expenses were $26.3 million for the three months ended March 31, 2025, compared to $24.9 million for the three months ended March 31, 2024, representing an increase of 5.7%. Significant changes included increases in salaries and employee benefits, equipment expense, professional services, outsourced services, and other expenses. Full time equivalent headcount decreased from 761 as of March 31, 2024 to 740 as of March 31, 2025 and represents a normal fluctuation of headcount.
Previous report
TrustCo Bank Corp NY
Reworded paragraphs (48)
Previous wording
The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three month period ended March 31, 2025, with comparisons to the corresponding period in 2024, as applicable. The consolidated interim financial statements and related notes, as well as the Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 14, 2025 (the “2024 Form 10-K”), should also be read in conjunction with this review. Amounts in the prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period’s presentation.
Current wording
The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three month and six month periods ended June 30, 2025, with comparisons to the corresponding period in 2024, as applicable. The consolidated interim financial statements and related notes, as well as the Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 14, 2025 (the “2024 Form 10-K”), should also be read in conjunction with this review. Amounts in the prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period's presentation.
Previous wording
Following this Management’s Discussion and Analysis is the table “Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential” which gives a detailed breakdown of TrustCo’s average interest earning assets and interest bearing liabilities for the three month periods ended March 31, 2025 and 2024.
Current wording
Following this Management’s Discussion and Analysis is the table "Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential" which gives a detailed breakdown of TrustCo's average interest earning assets and interest bearing liabilities for the three and six month periods ended June 30, 2025 and 2024.
Previous wording
During the first quarter of 2025, financial markets got off to a good start and continued to rally for a time before market volatility began in February and continued through the rest of the quarter, resulting in declines in most of the financial indices. For the first quarter of 2025, the S&P 500 Index was down 4.59%, Nasdaq was down 10.42%, and the Dow Jones Industrial Average was down 1.28% compared to the fourth quarter of 2024. The 10‑year Treasury bond averaged 4.45% during Q1 2025 compared to 4.28% in Q4 2024, an increase of 17 basis points. The 2‑year Treasury bond average remained flat at 4.15%, and the spread between the 10‑year and the 2-year Treasury bonds increased from 0.13% on average in Q4 2024 to 0.30% in Q1 2025. Generally, steeper yield curves are favorable for portfolio mortgage lenders like TrustCo, and the table below illustrates the range of rate movements for both short term and longer term rates. During the first quarter of 2025 Federal Funds rate remained flat at a range of 5.25% to 5.50% as of March 31, 2025.
Current wording
During the second quarter of 2025, financial markets rebounded after posting declines in financial indices during the first quarter of 2025. For the second quarter of 2025, the S&P 500 Index was up 10.57%, Nasdaq was up 17.75%, and the Dow Jones Industrial Average was up 4.98% compared to the end of the first quarter of 2025. The 10‑year Treasury bond averaged 4.36% during Q2 2025 compared to 4.45% in Q1 2025, a decrease of 9 basis points. The 2‑year Treasury bond average rate decreased 29 basis points to 3.86% during Q2 2025, which steepened the yield curve over the prior quarter. The spread between the 10‑year and the 2-year Treasury bonds increased from 0.30% on average in Q1 2025 to 0.50% in Q2 2025. Generally, steeper yield curves are favorable for portfolio mortgage lenders like TrustCo, and the table below illustrates the range of rate movements for both short term and longer-term rates. During the first half of 2025 Federal Funds rate remained flat at a range of 4.25% to 4.50% as of June 30, 2025
Previous wording
TrustCo recorded net income of $14.3 million, or $0.75 of diluted earnings per share, for the three months ended March 31, 2025, compared to net income of $12.1 million, or $0.64 of diluted earnings per share, in the same period in 2024. Return on average assets was 0.93% and 0.80%, respectively, for the three months ended March 31, 2025 and 2024. Return on average equity was 8.49% and 7.54%, respectively, for the three months ended March 31, 2025 and 2024.
Current wording
TrustCo recorded net income of $15.0 million, or $0.79 of diluted earnings per share, for the three months ended June 30, 2025, compared to net income of $12.6 million, or $0.66 of diluted earnings per share, in the same period in 2024. Return on average assets was 0.96% and 0.82%, respectively, for the three-months ended June 30, 2025 and 2024. Return on average equity was 8.73% and 7.76%, respectively, for the three-months ended June 30, 2025 and 2024.
Previous wording
TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates and, more generally, in the national economy, financial market conditions and the regulatory environment. Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results. Included in the 2024 Form 10-K is a description of the effect that continued elevated interest rates had on the results for the year 2024 compared to 2023. Many of the same market factors discussed in the 2024 Form 10-K continued to have an impact on results through the first quarter of 2025.
Current wording
TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates and, more generally, in the national economy, financial market conditions and the regulatory environment. Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results. Included in the 2024 Form 10-K is a description of the effect that continued elevated interest rates had on the results for the year 2024 compared to 2023. Many of the same market factors discussed in the 2024 Form 10-K continued to have an impact on results through the second quarter of 2025.
Previous wording
Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to control national economic policy is the “Federal Funds” rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. During the first quarter of 2025 Federal Funds rate remained flat at a range of 5.25% to 5.50% as of March 31, 2025.
Current wording
Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to control national economic policy is the “Federal Funds” rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. During the second quarter of 2025 Federal Funds rate remained flat at a range of 4.25% to 4.50% as of June 30, 2025.
Previous wording
TrustCo’s principal loan products are residential real estate loans. Most of TrustCo’s residential real estate loans carry a fixed rate of interest. As noted above, residential real estate loans and longer‑term investments are most affected by the changes in longer term market interest rates such as the 10-year Treasury. The 10‑year Treasury yield was up 17 basis points, on average, during the first quarter of 2025 compared to the fourth quarter of 2024, and it was up 29 basis points as compared to the first quarter of 2024.
Current wording
TrustCo’s principal loan products are residential real estate loans. Most of TrustCo’s residential real estate loans carry a fixed rate of interest. As noted above, residential real estate loans and longer‑term investments are most affected by the changes in longer term market interest rates such as the 10-year Treasury. The 10‑year Treasury yield decreased 9 basis points, on average, during the second quarter of 2025 compared to the first quarter of 2025 and also decreased 9 basis points as compared to the second quarter of 2024.
Previous wording
While TrustCo has been affected by changes in financial markets over time, management believes that the impacts have been mitigated by the Company’s generally conservative approach to banking. The Company utilizes a traditional underwriting process in evaluating loan applications, and since originated loans are retained in the portfolio, there is a strong incentive to be conservative in making credit decisions. For additional information concerning TrustCo’s loan portfolio and nonperforming loans, please refer to the discussions under “Loans” and “Nonperforming Assets,” respectively. Further, the Company does not rely on borrowed funds to support its assets and maintains a significant level of liquidity on the asset side of the Statement of Financial Condition. Management believes that these characteristics provide the Company with increased flexibility and stability during periods of market disruption and interest rate volatility.
Current wording
While TrustCo has been affected by changes in financial markets over time, management believes that the impacts have been mitigated by the Company’s generally conservative approach to banking. The Company utilizes a traditional underwriting process in evaluating loan applications, and since originated loans are retained in the portfolio, there is a strong incentive to be conservative in making credit decisions. For additional information concerning TrustCo’s loan portfolio and nonperforming loans, please refer to the discussions under “Loans” and “Nonperforming Assets,” respectively. Further, the Company does not rely on borrowed funds to support its assets and maintains a significant level of liquidity on the asset side of the balance sheet. Management believes that these characteristics provide the Company with increased flexibility and stability during periods of market disruption and interest rate volatility.
Previous wording
For the first quarter of 2025, the net interest margin was 2.64%, up 20 basis points versus the prior year’s first quarter. The quarterly results reflect the following significant factors:
Current wording
For the second quarter of 2025, the net interest margin was 2.71%, up 18 basis points versus the prior year’s second quarter. The quarterly results reflect the following significant factors:
Previous wording
During the first quarter of 2025, the Company continued to focus on its strategy to expand its loan portfolio by offering competitive interest rates. Management believes the TrustCo residential real estate loan product is very competitive compared to local and national competitors. Competition remains strong in the Company’s market areas.
Current wording
During the second quarter of 2025, the Company continued to focus on its strategy to expand its loan portfolio by offering competitive interest rates. Management believes the TrustCo residential real estate loan product is very competitive compared to local and national competitors. Competition remains strong in the Company’s market areas.
Previous wording
Total average interest earning assets increased from $5.99 billion in the first quarter of 2024 to $6.11 billion in the same period of 2025 with an average yield of 4.13% in the first quarter of 2025 and 3.99% in the first quarter of 2024. The mix of assets invested in securities available for sale decreased while Federal Funds sold and other short-term investments and loans increased over the prior year period. Interest income on average earning assets increased $3.1 million in the first quarter of 2025 from the prior year period. This increase was primarily driven by an increase in interest income on loans due to higher interest rates on loan originations over the last year.
Current wording
Total average interest earning assets increased from $5.98 billion in the second quarter of 2024 to $6.15 billion in the same period of 2025 with an average yield of 4.19% in the second quarter of 2025 and 4.06% in the second quarter of 2024. The mix of assets invested in Federal Funds sold and other short-term investments and loans increased while securities available for sale and held to maturity securities decreased over the prior year period. Interest income on average earning assets increased from $60.6 million in the second quarter of 2024 to $64.5 million in the second quarter of 2025. This increase was primarily driven by the increase in average balances and an increase in interest income on loans due to higher interest rates on loan originations over the last year and variable rate loans repricing upwards.
Previous wording
The average balance of loans was $5.11 billion in the first quarter of 2025 up from $5.01 billion in the comparable period in 2024. The yield on loans also increased 21 basis points to 4.19%.
Current wording
The average balance of loans was $5.14 billion in the second quarter of 2025 and $5.02 billion in the comparable period in 2024. The yield on loans was up 21 basis points to 4.25%. Interest income on loans was $54.6 million in the second quarter of 2025 up $3.9 million from the same period in 2024.
Previous wording
Compared to the first quarter of 2024, the average balance of residential mortgage loans, commercial loans, and home equity loans all increased, while installment loans decreased. The average balance of residential mortgage loans was $4.39 billion in 2025 compared to $4.36 billion in 2024, an increase of 0.6%. The average yield on residential mortgage loans increased by 18 basis points to 3.89% in the first quarter of 2025 compared to 2024, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield.
Current wording
The average balance of residential mortgage loans was $4.39 billion in the second quarter of 2025 compared to $4.36 billion in 2024, an increase of 0.6%. The average yield on residential mortgage loans increased by 19 basis points to 3.94% in the second quarter of 2025 compared to 2024, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield.
Previous wording
Commercial loans, which consist primarily of loans secured by commercial real estate, increased $20.7 million to an average balance of $297.9 million in the first quarter of 2025 compared to the same period in the prior year. The average yield on this portfolio was up 31 basis points to 5.59% compared to the prior year period, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield and variable rate loans repricing. The Company has sought to remain selective in underwriting commercial loans in recent periods as the apparent risk/reward balance has been less favorable in some cases compared to that of prior periods.
Current wording
Commercial loans, which consist primarily of loans secured by commercial real estate, increased $25.8 million to an average balance of $306.4 million in the second quarter of 2025 compared to the same period in the prior year. The average yield on this portfolio was up 19 basis points to 5.56% compared to the prior year period, primarily as a result of higher interest rates on new originations compared to the existing portfolio yield and variable rate loans repricing upwards. The Company has sought to remain selective in underwriting commercial loans in recent periods as the apparent risk/reward balance has been less favorable in some cases compared to that of prior periods.
Previous wording
The average yield on home equity credit lines increased 8 basis points to 6.30% during the first quarter of 2025 compared to the prior year period. The average balances of home equity lines increased 17.3% to $414.0 million in the first quarter of 2025 as compared to the prior year.
Current wording
The average yield on home equity credit lines decreased 3 basis points to 6.39% during the second quarter of 2025 compared to the year earlier period. The average balances of home equity credit lines increased 17.8% to $428.9 million in the second quarter of 2025 as compared to the prior year.
Previous wording
The average balance of the securities available for sale portfolio for the first quarter of 2025 was $369.9 million compared to $477.4 million for the comparable period in 2024. The decrease in the balance reflects routine paydowns, calls and maturities, partially offset by new investment purchases. The average yield was 2.62% for the first quarter of 2025 compared to 2.50% for the first quarter of 2024. The increase in average yield is a result of higher yields on bonds purchased as well as lower rate bonds maturing since the prior year quarter. This portfolio is primarily comprised of agency issued residential mortgage-backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), Small Business Administration participation certificates, corporate bonds and municipal bonds. These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income (loss), net of tax.
Current wording
The average balance of the securities available for sale portfolio for the second quarter of 2025 was $358.6 million compared to $437.6 million for the comparable period in 2024. The decrease in the balance reflects routine paydowns, calls and maturities, partially offset by new investment purchases. The average yield was 2.81% for the second quarter of 2025 compared to 2.58% for the second quarter of 2024. The increase in average yield is a result of higher yields on bonds purchased as well as lower rate bonds maturing since the prior year quarter. This portfolio is primarily comprised of agency issued residential mortgage backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), Small Business Administration participation certificates, corporate bonds and municipal bonds. These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income (loss), net of tax.
Previous wording
The net unrealized loss in the available for sale securities portfolio was $24.0 million as of March 31, 2025 compared to a net unrealized loss of $29.3 million as of December 31, 2024. The decrease in the net unrealized losses in the portfolio is the result of the current interest rate environment.
Current wording
The net unrealized loss in the available for sale securities portfolio was $20.8 million as of June 30, 2025 compared to a net unrealized loss of $29.3 million as of December 31, 2024. The decrease in net unrealized losses in the portfolio is the result of the current interest rate environment.
Previous wording
The average balance of held to maturity securities was $5.2 million for the first quarter of 2025 compared to $6.3 million in the first quarter of 2024. The decrease in balances reflects routine paydowns. No new securities were added to this portfolio during the period. The average yield was 4.34% for the first quarter of 2025 compared to 4.30% for the year earlier period. TrustCo expects to hold the securities in this portfolio until they mature or are called.
Current wording
The average balance of held to maturity securities was $5.0 million for the second quarter of 2025 compared to $6.1 million in the second quarter of 2024. The decrease in balances reflects routine paydowns. No new securities were added to this portfolio during the period. The average yield was 4.37% for the second quarter of 2025 compared to 4.28% for the year earlier period. TrustCo expects to hold the securities in this portfolio until they mature or are called.
Previous wording
The net unrecognized loss in the held to maturity securities portfolio was $9 thousand as of March 31, 2025 compared to a net unrecognized loss of $59 thousand as of December 31, 2024. The decrease in the net unrecognized losses in the portfolio is the result of changes in market interest rate levels.
Current wording
The net unrecognized gain in the held to maturity securities portfolio was $8 thousand as of June 30, 2025 compared to a net unrecognized loss of $59 thousand as of December 31, 2024. The decrease in the net unrecognized losses in the portfolio is the result of changes in market interest rate levels.
Previous wording
The 2025 first quarter average balance of Federal Funds sold and other short-term investments was $613.6 million, a $116.0 million increase from the $497.7 million average for the same period in 2024, primarily due to an increase in deposits and funds from maturing securities which have not yet been deployed. The yield was 4.45% for the first quarter of 2025 and 5.45% for the comparable period in 2024. Interest income from this portfolio decreased $18 thousand from the prior year period. While the average balances increased year over year, the decrease in the Federal Funds target rate resulted in a decrease in interest income over the same period in the prior year.
Current wording
The 2025 second quarter average balance of Federal Funds sold and other short-term investments was $648.5 million, a $142.0 million increase from the $506.5 million average for the same period in 2024, primarily due to an increase in deposits and funds from maturing and called securities which have not yet been deployed. The yield was 4.46% for the second quarter of 2025 and 5.48% for the comparable period in 2024. Interest income from this portfolio increased $318 thousand from $6.9 million in 2024 to $7.2 million in 2025. The increase in the average balance was enough to offset the decrease in yield over the same period.
Previous wording
Total average interest bearing deposits (which includes interest bearing checking, money market accounts, savings and time deposits) increased $67.8 million to $4.65 billion for the first quarter of 2025 versus the first quarter in the prior year, and the average rate paid decreased from 2.02% for 2024 to 1.94% for 2025. Total interest expense on these deposits decreased $707 thousand to $22.3 million in the first quarter of 2025 compared to the year earlier period. From the first quarter of 2024 to the first quarter of 2025, interest bearing checking account average balances were up 4.9%, certificates of deposit average balances were up 8.7%, non‑interest demand average balances were up 4.9%, average savings balances decreased 6.0% and money market balances were down 13.9%. Overall, average balances are up from a year ago as we continue to encourage customers to retain their funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.
Current wording
Total average interest bearing deposits (which includes interest bearing checking, money market accounts, savings and time deposits) increased $130.7 million to $4.68 billion for the second quarter of 2025 versus the second quarter in the prior year, and the average rate paid decreased from 2.00% for 2024 to 1.93% for 2025. Total interest expense on these deposits decreased $41 thousand to $22.6 million in the second quarter of 2025 compared to the year earlier period. From the second quarter of 2024 to the second quarter of 2025, interest bearing checking account average balances were up 3.0%, certificates of deposit average balances were up 11.3%, non-interest demand average balances were up 5.8%, average savings balances decreased 5.1% and money market balances were down 10.2%. Overall, average balances are up from a year ago as we continue to encourage customers to retain their funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.
Previous wording
As of March 31, 2025 and December 31, 2024, approximately $1.16 billion and $1.11 billion, respectively, of our deposit portfolio was uninsured. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.
Current wording
As of June 30, 2025 and December 31, 2024, approximately $1.13 billion and $1.11 billion, respectively, of our deposit portfolio were uninsured. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.
Previous wording
Average short-term borrowings for the first quarter of 2025 were $83.2 million compared to $93.3 million in the same period in 2024. The decrease in the average balance from the prior year period is primarily a result of a shift of funds into time deposits. The average rate remained flat at 0.88% in each of the first quarters of 2024 and 2025. The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral.
Current wording
Average short-term borrowings for the second quarter were $81.1 million in 2025 compared to $93.7 million in 2024. The decrease in the average balance from the prior year period is primarily a result of a shift of funds into time deposits. The weighted average interest rate for short-term borrowings during the second quarter decreased during this time period from 0.89% in 2024 to 0.87% in 2025. The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral. The customer account balances changed based on the needs of the underlying retail customers.
Previous wording
The Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”) and is an eligible borrower at the Federal Reserve Bank of New York (“FRBNY”) and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a potential contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered CDs may be tested from time to time to ensure operational and market readiness. As of March 31, 2025 the Company also has borrowing capacity of $928 million available with the FHLBNY. The borrowings capacity is secured by the loans pledged by the Company. As of March 31, 2025 and 2024, the Company had no outstanding borrowings with the FHLBNY.
Current wording
The Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”) and is an eligible borrower at the Federal Reserve Bank of New York (“FRBNY”) and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a potential contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered CDs may be tested from time to time to ensure operational and market readiness. As of June 30, 2025 the Company also has borrowing capacity of $955.7 million available with the Federal Home Loan Bank of New York. The borrowings capacity is secured by the loans pledged by the Company. As of June 30, 2025 and December 31, 2024, the Company had no outstanding borrowings with the Federal Home Loan Bank of New York.
Previous wording
Net interest income was up $3.8 million from $36.6 million in the first quarter of 2024 to $40.4 million in the first quarter of 2025, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest spread was up 21 basis points to 2.21% in the first quarter of 2025 compared to the same period in 2024. As previously noted, the net interest margin was up 20 basis points to 2.64% for the first quarter of 2025 compared to the same period in 2024. Yields on earning assets increased in the first quarter of 2025 compared to the first quarter of 2024, and rates on interest-bearing liabilities decreased causing margin expansion. The Federal Reserve’s decision regarding whether to cut or hold rates in upcoming meetings will have an effect on the Company’s ability to decrease deposit costs which should help margin in future quarters. During the first quarter of 2025, the Company has been able to lower the rates offered on our time deposits while continuing to retain and grow that product. This is expected bring down the cost of time deposits over time.
Current wording
Net interest income increased by $4.0 million to $41.7 million in the second quarter of 2025 compared to the same period in 2024 driven by loan growth at higher interest rates and an increase in interest on federal funds sold and other short-term investments, partially offset by lower investment interest income. The net interest spread was up 19 basis points to 2.28% in the second quarter of 2025 compared to the same period in 2024. As previously noted, the net interest margin was up 18 basis points to 2.71% for the second quarter of 2025 compared to the same period in 2024. Yields on earning assets increased in the second quarter of 2025 compared to the second quarter of 2024, and rates on interest-bearing liabilities decreased causing margin expansion. The Federal Reserve’s decision regarding whether to cut or hold rates in upcoming meetings will have an effect on the Company’s ability to decrease deposit costs which should help margin in future quarters. During the second quarter of 2025, the Company has been able to lower the rates offered on our time deposits while continuing to retain and grow that product. This is expected bring down the cost of time deposits over time.
Previous wording
Nonperforming loans and foreclosed real estate: Total NPLs were $18.8 million as of both March 31, 2025 and December 31, 2024. There were no loans as of March 31, 2025 and December 31, 2024 that were past due 90 days or more and still accruing interest.
Current wording
Nonperforming loans and foreclosed real estate: Total NPLs were $17.9 million at June 30, 2025, compared to $18.8 million at December 31, 2024. There were no loans as of June 30, 2025 and December 31, 2024 that were past due 90 days or more and still accruing interest.
Previous wording
As of March 31, 2025, nonperforming loans primarily include a mix of commercial and residential loans. Of total nonperforming loans of $18.8 million as of March 31, 2025, $17.9 million were residential real estate loans, $688 thousand were commercial loans and mortgages and $142 thousand were installment loans, compared to $18.3 million, $343 thousand and $130 thousand, respectively, at December 31, 2024.
Current wording
At June 30, 2025, nonperforming loans primarily include a mix of commercial and residential loans. Of total nonperforming loans of $17.9 million at June 30, 2025, $17.2 million were residential real estate loans, $684 thousand were commercial loans and mortgages and $46 thousand were installment loans, compared to $18.3 million, $343 thousand and $130 thousand, respectively, at December 31, 2024.
Previous wording
A significant percentage of nonperforming loans are residential real estate loans, which are historically lower-risk than most other types of loans. Net charge-offs were $41 thousand on residential real estate loans (including home equity lines of credit) for the first quarter of 2025 as compared to net recoveries of $78 thousand in the first quarter of 2024. Management believes that these loans have been appropriately written down where required.
Current wording
A significant percentage of nonperforming loans are residential real estate loans, which are historically lower-risk than most other types of loans. Net recoveries were $121 thousand on residential real estate loans (including home equity lines of credit) for the second quarter of 2025 compared to net recoveries $57 thousand for the second quarter of 2024. Management believes that these loans have been appropriately written down where required.
Previous wording
The Company originates loans throughout its branch franchise area. As of March 31, 2025, 64.2% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 35.8% were in Florida. Those figures compare to 64.3% and 35.7%, respectively at December 31, 2024.
Current wording
The Company originates loans throughout its branch franchise area. At June 30, 2025, 64.4% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 35.6% were in Florida. Those figures compare to 64.3% and 35.7%, respectively at December 31, 2024.
Previous wording
Economic conditions vary widely by geographic location. As a percentage of the total nonperforming loans as of March 31, 2025, 16.7% were to Florida borrowers, compared to 83.3% to borrowers in New York and surrounding areas. For the three months ended March 31, 2025, New York and surrounding areas experienced net charge-offs of approximately $41 thousand, and Florida experienced net recoveries of $299 thousand.
Current wording
Economic conditions vary widely by geographic location. As a percentage of the total nonperforming loans as of June 30, 2025, 17.6% were to Florida borrowers, compared to 82.4% to borrowers in New York and surrounding areas. For the three months ended June 30, 2025, New York and surrounding areas experienced net recoveries of approximately $103 thousand and there were net charge-offs of $94 thousand in Florida for the second quarter of 2025.
Previous wording
Loans individually evaluated for impairment are non-accrual loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications to borrowers experiencing financial difficulty. There were $786 thousand of commercial mortgages and commercial loans classified as individually evaluated as of March 31, 2025 compared to $443 thousand at December 31, 2024. There were $23.2 million of individually evaluated residential loans as of March 31, 2025 compared to $23.8 million at December 31, 2024.
Current wording
Loans individually evaluated for impairment are non-accrual loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications to borrowers experiencing financial difficulty. There were $780 thousand of commercial mortgages and commercial loans classified as individually evaluated as of June 30, 2025 compared to $443 thousand classified as individually evaluated at December 31, 2024. There were $23.5 million of individually evaluated residential loans at June 30, 2025 compared to $23.8 million classified as individually evaluated at December 31, 2024.
Previous wording
As of March 31, 2025 there was $2.1 million of foreclosed real estate compared to $2.2 million at December 31, 2024.
Current wording
As of June 30, 2025 there was $1.1 million of foreclosed real estate compared to $2.2 million at December 31, 2024.
Previous wording
Allowance for credit losses on loans: As of March 31, 2025, the Company utilized the Baseline scenario model of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the baseline scenario, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions, and the potential impact of persistent high inflation on the economy. Outcomes in any or all of these factors could differ from the baseline scenario utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
Current wording
As of June 30, 2025, the Company utilized the Baseline scenario model of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the baseline scenario, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions and the potential impact of persistent high inflation on the economy. Outcomes in any or all of these factors could differ from the baseline scenario utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
Previous wording
In the first quarter of 2025, the Company recorded a provision for credit losses of $300 thousand, which is the result of a provision for credit losses on loans of $100 thousand, and provision for credit losses on unfunded commitments of $200 thousand. The increase in the ACLL during the first quarter of 2025 was primarily a result of loan growth. The increase in the provision for credit losses on unfunded commitments is a result of an increase in unfunded loan commitments.
Current wording
In the second quarter of 2025, the Company recorded a provision for credit losses of $650 thousand, which is all related to the provision for credit losses on loans, as there was no provision for credit losses on unfunded commitments. The increase in the ACLL during the second quarter of 2025 was primarily a result of loan growth. In the second quarter of 2024, the Company recorded a provision for credit losses of $500 thousand, which is all related to the provision for credit losses on loans, as there was no provision for credit losses on unfunded commitments. The Company recorded a provision for credit losses of $950 thousand for the six months ended June 30, 2025 which is the result of a provision for credit losses on loans of $750 thousand and a provision for unfunded commitments of $200 thousand. For the six months ended June 30, 2024 the Company recorded a provision for credit losses of $1.1 million which is all related to the provision for credit losses on loans, as there was no provision for credit losses on unfunded commitments.
Previous wording
The allocation of the allowance for credit losses on loans as follows:
Current wording
The allocation of the allowance for credit losses on loans is as follows:
Previous wording
As of March 31, 2025, the allowance for credit losses on loans was $50.6 million, compared $50.2 million at December 31, 2024. The allowance represents 0.99% of the loan portfolio as of March 31, 2025 and December 31, 2024. The coverage ratio, or the allowance for credit losses on loans to NPLs, was 269.8% and 267.3% as of March 31, 2025 and December 31, 2024, respectively.
Current wording
At June 30, 2025, the allowance for credit losses on loans was $51.3 million, compared to $50.2 million at December 31, 2024. The allowance represents 0.99% of the loan portfolio at both June 30, 2025 and December 31, 2024. The coverage ratio, or the allowance for credit losses on loans to NPLs, was 286.2% and 267.3% as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
Net recoveries for the three-month period ended March 31, 2025 were $258 thousand and $42 thousand for the prior year period.
Current wording
Net recoveries for the three-month period ended June 30, 2025 were $9 thousand and $52 thousand for the prior year period.
Previous wording
During the first quarter of 2025, there were $4 thousand of commercial loan charge-offs, $80 thousand of residential loan charge-offs, and $40 thousand of consumer loan charge-offs compared with no commercial loan charge-offs, $117 thousand of residential loan charge-offs and $44 thousand of consumer loan charge-offs in the first quarter of 2024. During the first quarter of 2025 there were $320 thousand of commercial loan recoveries, $41 thousand of residential mortgage loan recoveries, and $21 thousand of consumer loan recoveries, compared to no commercial loan recoveries, $195 thousand for residential mortgage loan recoveries, and $8 thousand of consumer loan recoveries in the first quarter of 2024.
Current wording
During the second quarter of 2025, there were no commercial loan charge-offs, $17 thousand of gross residential loan charge-offs, and $116 thousand of installment loan charge-offs, compared with no commercial loan charge-offs, $17 thousand of gross residential mortgage charge-offs, and $17 thousand of installment loan charge-offs in the second quarter of 2024. During the second quarter of 2025 there were no of commercial loan recoveries, $138 thousand of residential mortgage recoveries, and $4 thousand for installment loan recoveries, compared to no commercial loan recoveries, $74 thousand of residential mortgage recoveries, and $12 thousand of installment loan recoveries in the second quarter of 2024.
Previous wording
The following table presents the net charge-off ratio for the three months ended March 31, 2025 and 2024:
Current wording
The following table presents the net charge-off ratio for the three and six months ended June 30, 2025 and 2024:
Previous wording
The Company uses an industry standard external model as the primary tool to identify, quantify and project changes in interest rates and prepayment speeds taken both from industry sources and internally generated data based upon historical trends in the Bank’s balance sheet. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in market interest rates are also incorporated into the model. This model calculates an economic or fair value amount with respect to non-time deposit categories since these deposits are part of the core deposit products of the Company. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure the fair value of capital or precisely predict the impact of fluctuations in interest rates on the fair value of capital.
Current wording
The Company uses an industry standard external model as the primary tool to identify, quantify and project changes in interest rates and the effect on loan prepayment speeds taken both from industry sources and internally generated data based upon historical trends in the Bank’s balance sheet. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in market interest rates are also incorporated into the model. This model calculates an economic or fair value amount with respect to non-time deposit categories since these deposits are part of the core deposit products of the Company. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure the fair value of capital or precisely predict the impact of fluctuations in interest rates on the fair value of capital.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
TrustCo recorded net income of $29.3 million, or $1.54 of diluted earnings per share, for the six months ended June 30, 2025, compared to net income of $24.7 million, or $1.30 of diluted earnings per share, in the same period in 2024. Return on average assets was 0.94% and 0.81%, respectively, for the six months ended June 30, 2025 and 2024. Return on average equity was 8.61% and 7.65%, respectively, for the six months ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
The primary factors accounting for the change in net income for the six months ended June 30, 2025 compared to the same period of the prior year were:
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, the net interest margin was 2.68%, up 20 basis points versus the prior year. The six month results reflect the following significant factors:
Current report — wording carried from elsewhere
Allowance for credit losses on loans:
Current report — wording carried from elsewhere
The following table indicates the impact on the fair value of capital assuming interest rates were to instantaneously increase or decrease by 100 bp, 200 bp, 300 bp and 400 bp.
Current report — wording carried from elsewhere
I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY:
Current report — wording carried from elsewhere
The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo (adjusted for tax equivalency) for each of the reported periods. Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities. Included in the average balance of shareholders' equity is the unrealized loss, net of tax, in the available for sale portfolio of $17.6 million in 2025 and $26.2 million in 2024. The subtotals contained in the following table are the arithmetic totals of the items contained in that category. Increases and decreases in interest income and expense due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.