- Net income for Q2 2025 rose 19.8% to $15.0 million, with earnings per diluted share at $0.79.
- Net interest income increased by 10.5% to $41.7 million, with the net interest margin expanding to 2.71%.
- Home equity lines of credit and commercial loans saw significant growth of 18% and 11%, respectively, over the year.
TrustCo Bank Corp NY (TRST, Financial) has reported a robust financial performance for the second quarter of 2025. The bank's net income surged by 19.8% year-over-year to $15.0 million, equating to $0.79 per diluted share. This notable increase was primarily driven by a 10.5% rise in net interest income, reaching $41.7 million. The net interest margin improved to 2.71%, a year-over-year rise of 18 basis points, reflecting effective asset repricing and control of deposit costs.
The bank witnessed substantial loan portfolio growth, with average loans rising by $115.6 million. Specifically, home equity credit lines soared by 18%, and commercial loans increased by 11% compared to the prior year. This growth exemplifies TrustCo's strategic focus on high-yielding financial products.
Asset quality remained strong, with nonperforming loans (NPLs) declining to 0.35% of total loans from 0.38% a year ago. The coverage ratio was reported at 286.2%. TrustCo's capital position was fortified, with the equity-to-assets ratio improving to 10.91%, and the book value per share increasing by 6.6% to $36.75.
In addition to organic growth, TrustCo executed a disciplined capital management strategy, repurchasing 169,000 shares—approximately 0.9% of outstanding shares—during the quarter. The wealth management division also demonstrated strength, with fees up by 13% and assets under management reaching $1.19 billion, marking an 8.2% increase year-over-year.
