TrustCo Bank's Q4 2024: Solid Loan Growth and Capital Strength Amid Home Equity Surge

Loan Growth and Home Equity Focus:
- TrustCo Bank reported a $105 million increase in average loans, a 2.1% year-over-year growth in Q4 2024.
- Home equity loans led the growth with a $61 million increase, or 17.9% increase year-over-year.
- This was driven by the bank leveraging its extensive branch network and customer base to increase home equity lending, particularly for home improvements.

Earnings and Capital Strength:
- The company reported a net income of $48.8 million in 2024, with a return on average equity of nearly 7.5%.
- The consolidated equity to assets ratio was 10.84% in Q4 2024, up from 10.46% in Q4 2023.
- This performance was supported by efficient operations, capital preservation, and effective balance sheet management.

Deposit and Investment Strategies:
- Average deposits increased by $31.7 million, or 0.6%, in Q4 2024 compared to Q4 2023.
- The bank held an average of $504 million in overnight investments in Q4 2024, an increase of $43 million from the previous year.
- These developments reflect the bank's ability to retain and grow deposits while maintaining liquidity for loan growth and balance sheet management.

Credit Quality and Asset Performance:
- Non-performing loans remained essentially flat at 0.37% of total loans, with net charge-offs at 0.01% in 2024.
- The allowance for credit losses remained strong at $50.2 million with a coverage ratio of 267%.
- The bank's credit quality is supported by conservative lending practices, reasonable standards, and strong underwriting processes.