Trustco Bank Corp N Y (TRST) Reports Q3 2023 Net Income of $14.7 Million
Trustco Bank Corp N Y (NASDAQ:TRST) reports Q3 2023 net income of $14.7 million, down from $19.4 million in Q3 2022.
Total loan growth increased by $330.8 million, or 7.1%, for Q3 2023 over the same period in 2022.
Deposit balances rebounded with net deposit inflows during the first nine months of 2023.
Trustco Bank Corp N Y (NASDAQ:TRST) remains debt-free and extremely well-capitalized.
Trustco Bank Corp N Y (NASDAQ:TRST) announced its Q3 2023 earnings on October 23, 2023. The bank reported a net income of $14.7 million, or $0.77 diluted earnings per share, a decrease from the $19.4 million, or $1.01 diluted earnings per share, reported for the same period in 2022. Despite the decrease in net income, the bank saw a significant increase in total loan growth, which rose by $330.8 million, or 7.1%, over the same period in 2022.
Financial Performance and Strategy
Robert J. McCormick, Chairman, President, and CEO of Trustco Bank Corp N Y (NASDAQ:TRST), attributed the bank's strength to its credit quality and solid underwriting. He stated,
Our strength, in large measure, is characterized by our credit quality. Solid underwriting and the avoidance of irresponsible lending have long been part of the fabric of our company."
McCormick also highlighted the bank's successful strategy of leveraging strong customer relationships to foster organic loan portfolio growth and retain deposits despite competitive pressure on pricing.
Loan and Deposit Growth
Trustco Bank Corp N Y (NASDAQ:TRST) saw deposit balances rebound from the end of the prior year with net deposit inflows during the first nine months of 2023. Loan growth continued across all categories in Q3 2023 compared to the prior years third quarter, led by an increase in residential mortgages. The bank's loan portfolio expansion was funded by a combination of utilizing a portion of its strong cash balances and by cash flow from investments, deposit inflows, and cash flow from the existing loan portfolio.
Asset Quality and Capital Ratio
Trustco Bank Corp N Y (NASDAQ:TRST) maintains strong asset quality, with seven consecutive quarters of net loan recoveries. The bank's capital ratio results for this quarter exemplify its focus on liquidity management. McCormick stated,
Liquidity management continues to be an acute focus, and our capital ratio results this quarter exemplify those efforts."
As of September 30, 2023, the bank's equity to asset ratio stood at 10.31%, up from 9.69% at the same time in 2022.
Looking Forward
Despite the challenges, Trustco Bank Corp N Y (NASDAQ:TRST) remains optimistic about its future performance. The bank's strong liquidity position allows it to capitalize on opportunities as they arise. Trustco Bank Corp N Y (NASDAQ:TRST) continues to deploy strong marketing efforts to retain its deposit balances and is actively retaining deposits, which have increased since December 31, 2022.
This article first appeared on GuruFocus.
