Teleconferência de Resultados do 3º Trimestre de 2026 do TrustCo Bank (TRST): Lucro Líquido e Crescimento de Empréstimos Ganham Força

A TrustCo Bank Corp NY (NASDAQ: TRST) registrou alta no lucro, na receita líquida de juros, nos empréstimos e nos depósitos no terceiro trimestre de 2026. A administração afirmou que o momento financeiro positivo da empresa pode continuar em 2027, ao mesmo tempo em que mantém uma subscrição prudente e uma gestão conservadora do balanço patrimonial.

Destaques

• O lucro líquido do terceiro trimestre subiu 6,5% na comparação anual, atingindo US$ 17,3 milhões. O retorno sobre o ativo médio foi de 1,05%, enquanto o retorno sobre o patrimônio líquido médio alcançou 10,57%.
• A receita líquida de juros aumentou 9,1%, para US$ 47 milhões. A margem líquida de juros expandiu 16 pontos-base na comparação anual, para 2,95%, à medida que o custo dos passivos remunerados caiu.
• A carteira média de empréstimos cresceu 4,6%, atingindo US$ 5,4 bilhões, liderada por hipotecas de primeiro grau e empréstimos com garantia imobiliária. Os empréstimos efetivos aumentaram US$ 77,1 milhões em relação ao segundo trimestre.
• Os depósitos totais encerraram o trimestre em US$ 5,7 bilhões, com alta de US$ 203 milhões em relação ao ano anterior, sustentando a continuidade do crescimento dos empréstimos.
• A qualidade do crédito permaneceu estável. Os empréstimos inadimplentes somaram US$ 21,1 milhões, ou 0,39% do total de empréstimos, enquanto o índice de cobertura por provisões ficou em 262%.
• A TrustCo elevou seus dividendos trimestrais em 5,3%, para US$ 0,40 por ação, e deu continuidade à recompra de ações no âmbito de seus programas de 2025 e 2026.

Principais Dados Financeiros

Desempenho Operacional e dos Negócios

O crédito imobiliário residencial continuou sendo o principal motor de crescimento. Os saldos médios de hipotecas de primeiro grau aumentaram US$ 177,3 milhões, ou 4%, na comparação anual. Os empréstimos com garantia imobiliária (home equity) subiram US$ 50 milhões, ou 11,4%, enquanto os empréstimos comerciais avançaram US$ 13,5 milhões, ou 4,3%.

Em comparação com o segundo trimestre, os empréstimos efetivos cresceram US$ 77,1 milhões. As hipotecas de aquisição, incluindo refinanciamentos, aumentaram US$ 53,6 milhões, os empréstimos com garantia imobiliária subiram US$ 13,9 milhões e os empréstimos comerciais somaram US$ 10 milhões.

A administração afirmou que a originação de hipotecas e os volumes de empréstimos para aquisição permaneceram estáveis, mesmo com as taxas hipotecárias passando de menos de 6,5% no início do trimestre para mais de 7% no final do período. A demanda por crédito com garantia imobiliária também se manteve constante, à medida que os clientes utilizaram o patrimônio acumulado nos imóveis para atender às suas necessidades de empréstimo.

A divisão de Gestão de Patrimônio (Wealth Management) da TrustCo tinha aproximadamente US$ 1,37 bilhão em ativos sob gestão em 30 de setembro de 2026. A empresa informou que a maior parte da receita de tarifas relacionada é recorrente e respaldada por relacionamentos de consultoria de longo prazo.

O retorno de capital permaneceu uma prioridade. A TrustCo adquiriu mais de 1,5 milhão de ações em 2026, após comprar 1 milhão de ações em 2025, recomprando 13,2% das ações ordinárias em circulação no âmbito dos dois programas. O banco também declarou um dividendo trimestral de US$ 0,40 por ação, o equivalente a US$ 1,60 em termos anualizados.

Projeções da Administração

A administração espera que as despesas não financeiras recorrentes, líquidas de despesas com ORE (outros imóveis adjudicados), permaneçam entre US$ 27,8 milhões e US$ 28,2 milhões por trimestre em 2026. A empresa também mantém a projeção de despesas com ORE em no máximo US$ 200.000 por trimestre.

A empresa declarou estar posicionada para manter um forte desempenho da receita líquida de juros, mesmo que o Federal Reserve considere novas alterações nas taxas de juros. A administração também manifestou otimismo de que o momento operacional positivo possa continuar em 2027 e indicou que são esperados anúncios relativos às suas operações de crédito nos próximos meses.

Riscos e Pontos de Atenção

Os empréstimos inadimplentes aumentaram de US$ 18,5 milhões no ano anterior para US$ 21,1 milhões, embora tenham caído em relação aos US$ 21,8 milhões registrados no segundo trimestre. Os empréstimos inadimplentes representaram 0,39% do total de empréstimos, em comparação com 0,36% um ano atrás e 0,40% no trimestre anterior.

A provisão para perdas com crédito refletiu tanto o crescimento dos empréstimos quanto as mudanças nas projeções econômicas, e não uma deterioração do desempenho de crédito subjacente, segundo a administração. A TrustCo registrou uma recuperação líquida de US$ 30.000 no trimestre e acumula sete trimestres consecutivos de recuperações líquidas.

A volatilidade das taxas de juros permanece como um fator operacional a ser considerado. A administração observou que alguns clientes estão optando por certificados de depósito de prazo mais longo e que determinados volumes de empréstimos caíram, embora não tenha relatado alterações significativas no comportamento dos clientes em seus mercados conservadores no interior do estado de Nova York.

Destaques da Sessão de Perguntas e Respostas dos Analistas

Ao ser questionada sobre a forte elevação das taxas de juros, a administração afirmou que a posição de liquidez e capital da TrustCo permitiu deixar vencer alguns negócios de custo mais elevado antes de substituí-los seletivamente. O banco também está enfatizando o crédito com garantia imobiliária para sustentar os volumes.

Em relação ao risco de crédito, a administração reiterou que os padrões de subscrição permanecem conservadores. A TrustCo planeja manter sua abordagem atual em vez de flexibilizar as exigências de concessão de crédito, enquanto a provisão continua a refletir tanto o crescimento da carteira quanto as premissas do modelo CECL.

Transcrição Completa da Teleconferência de Resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

Operator

Good day, and welcome to the TrustCo Bank Corp Earnings Call and webcast. [Operator Instructions] Before proceeding, we would like to mention that this presentation may contain forward-looking information about TrustCo Bank Corp NY that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those expressed in or implied by such statements due to various risks, uncertainties and other factors. More detailed information about these and other risk factors can be found in our press release that preceded this call and in the Risk Factors and Forward-Looking Statements section of our annual report on Form 10-K and as updated by our quarterly reports on Form 10-Q. The forward-looking statements made on this call are valid only as of the date hereof, and the company disclaims any obligation to update this information to reflect events or developments after the date of this call, except as may be required by applicable law.

During today's call, we will discuss certain financial measures derived from our financial statements that are not determined in accordance with U.S. GAAP. The reconciliations of such non-GAAP financial measures to the most comparable GAAP figures are included in our earnings press release, which is available under the Investor Relations tab of our website at trustcobank.com. Please also note that today's event is being recorded. A replay of the call will be available for 30 days, and an audio webcast will be available for 1 year as described in our earnings press release. At this time, I would like to turn the conference over to Mr. Robert J. McCormick, Chairman, President and CEO. Please go ahead.

Robert McCormick

Good morning, everyone, and thank you for joining the call. As Chase said, I'm Rob McCormick, President of TrustCo Bank. I'm joined today as usual by Mike Ozimek, our CFO, who will go through the numbers; and Kevin Curley, our Chief Banking Officer, will talk about lending. We think it's best to describe the results this quarter as a result of positive financial momentum. Looking at year-over-year results, deposits have grown each quarter, average loans have grown each quarter and net income has grown each quarter. For the same period, return on average assets has improved each quarter, return on average equity has improved each quarter and net interest margin has improved each quarter.

This is not happening by accident. Our team has worked diligently in all areas to solidify customer relationships. We have reached out to customers with deposits and no loans to encourage equity borrowing and refinancing. We have provided incentives to loan customers to utilize our deposit products and become real customers of TrustCo Bank. And we've taken a fresh look at our loan and deposit offerings and the systems that deliver them. We've made enhancements to improve the customer service experience as well. With all those factors coming together and trending favorably, we are optimistic about the company's ability to maintain positive momentum into 2027. Investors and customers can be on the lookout for exciting announcement about our lending operation in the coming months.

We are also very pleased to have 2 new directors on board. Patty Fusco is likely known to many people in the New York market, provides expertise in human resources, and Brian Gunter is a highly experienced real estate professional from the West Coast of Florida. His addition to the Board expands our geographic diversity. Now Mike is going to talk about the numbers. Kevin will touch on the loan portfolio, and then we can take your questions.

Michael Ozimek

Thank you, Rob, and good morning, everyone. I will now review TrustCo's financial results for the third quarter of 2026. As we noted in the press release, the company continued to see strong financial results from the third quarter of 2026, marked by increases in both net income and net interest income during the third quarter of 2026 compared to the third quarter of 2025. This performance is underscored by rising net interest income and sustained loan and deposit growth across core lending and deposit categories. This resulted in the third quarter net income of $17.3 million, an increase of 6.5% over the prior year quarter, which yielded a return on average assets and average equity of 1.05% and 10.57%, respectively.

Capital remains strong. Consolidated equity to asset ratio was 9.72% for the third quarter of 2026 compared to 10.9% in the third quarter of 2025. Book value per share at September 30, '26, was $38.20, up 2.4% compared to $37.30 a year earlier. Driving these changes, TrustCo repurchased 13.2% of outstanding common stock under the 2025 and 2026 stock repurchase programs through the acquisition of over 1.5 million shares in 2026, following the purchase of 1 million shares in 2025, reinforcing a disciplined long-term capital allocation strategy. We remain committed to returning value to shareholders through a disciplined share repurchase program, which reflects our confidence in the long-term strength of our franchise and the focus on capital optimization. Additionally, during the third quarter, the bank declared an increased quarterly cash dividend of $0.40 per share or $1.60 per share on an annualized basis.

The declared dividend represents an increase of 5.3% over the prior dividend amount, which continues the bank's commitment in paying dividends for over a century. Credit quality continues to be stable as we saw nonperforming loans modestly increased to $21.1 million in the third quarter of '26 from $18.5 million in the third quarter of '25. Our continued focus on solid underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment. Average loans for the third quarter of '26 grew 4.6% or $238 million to $5.4 billion from the third quarter of '25. This loan growth continues to reflect the strength of our local markets and ongoing demand for credit.

For the third quarter of '26, the provision for credit losses was $850,000. The increase in the overall provision expense is being driven by loan growth and changes in economic forecast rather than the softening in the underlying credit performance. The ratio for the allowance for loan losses to total loans was 1.01% as of September 30, '26, and 1% as of September 2025. Our focus continues to be on traditional lending and conservative balance sheet management, which has continued to enable us to produce consistent high-quality recurring earnings. Retaining and growing deposits has been a key focus as we finish up 2026. Total deposits ended the quarter at $5.7 billion, was up $203 million compared to the prior year quarter. We believe the increase in these deposits compared to the same period in '25 continues to indicate strong customer confidence in the bank's competitive deposit offerings.

The bank's continued emphasis on relationship banking, combined with competitive product offerings and digital capabilities, have contributed to a stable deposit base that supports ongoing loan growth and expansion. Net interest income was $47 million for the third quarter of '26, an increase of $3.9 million or 9.1% compared to the prior year quarter. The net interest margin for the quarter -- third quarter of '26 was 2.95%, up 16 basis points from the prior year quarter. Yield on interest-earning assets increased to 4.35%, up 10 basis points from the prior year quarter. The cost of interest-bearing liabilities decreased to 1.79% in the third quarter of '26 from 1.9% in the third quarter of '25.

The bank is well positioned to continue delivering strong net interest income performance even as the Federal Reserve contemplates further rate changes in the months ahead. The bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our community banking needs. Our Wealth Management division continues to be a significant recurring source of noninterest income. They had approximately $1.37 billion of assets under management as of September 30, '26. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Now on to noninterest expense. Total noninterest expense net of ORE income came in at $28 million, down $300,000 from the prior quarter.

ORE income net came in at a credit of $12,000 for the quarter as compared to an expense of $8,000 in the prior year quarter. We're going to continue to guide the anticipated level of expense not to exceed $200,000 per quarter. All the other categories of noninterest expense were in line with our expectations for the third quarter. We would expect 2026 total recurring noninterest expense net of ORE expense to be in the range of $27.8 million to $28.2 million per quarter. Now Kevin will review the loan portfolio and nonperforming loans.

Kevin Curley

Thanks, Mike, and good morning to everyone. Our average loans grew by $238.1 million or 4.6% year-over-year. This is an improvement over last quarter's report of year-over-year growth of $197.5 million. The growth was centered in our residential loan portfolio with our first mortgage segment growing by $177.3 million or 4% and our home equity loans growing $50 million or 11.4% over last year. In addition, our commercial loans grew by $13.5 million or 4.3% over last year. For the third quarter, actual loans increased $77.1 million compared to the second quarter. Purchase mortgage loans, including refinances grew by $53.6 million. Home equity loans grew by $13.9 million and commercial loans were higher by $10 million for the quarter. During the third quarter, mortgage rates were below 6.5% at the beginning of the quarter and then increased to over 7% by the end of the quarter.

As noted previously, we have the flexibility to strategically manage pricing and introduce targeted promotions to drive lending volume. Our mortgage origination activity as well as our purchase loan volume was steady throughout the quarter. In addition, our home equity products continue to produce consistent demand as customers are able to use their equity to meet their borrowing needs. Overall, we are pleased with the loan growth during the quarter and remain committed to delivering strong results moving forward. Moving to asset quality. As a portfolio lender, we originate loans through maturity. This reinforces our disciplined approach to underwriting and risk management. Asset quality at the bank remains very strong. Our early-stage delinquencies in our portfolio continue to remain within the normal range. Charge-offs for the quarter amounted to a net recovery of $30,000, which follows a net recovery of $88,000 in the second quarter and a total of $171,000 in recoveries over the past year.

Overall, we have had 7 straight quarters of net recoveries. Nonperforming loans were $21.1 million at this quarter end, $21.8 million last quarter and $18.5 million a year ago. Nonperforming loans to total loans was 0.39% for quarter end compared to 0.4% last quarter and 0.36% a year ago. Nonperforming assets were $22.3 million at quarter end, $23 million last quarter and $19.7 million a year ago. At quarter end, our allowance for credit losses remained solid at $55.2 million with a coverage ratio of 262% compared to $54.1 million with a coverage ratio of 249% at the end of the second quarter and $51.9 million and a coverage ratio of 281% a year ago. Rob?

Robert McCormick

Thanks, Kevin. That's our story. We're happy to answer any questions anybody might have.

Operator

Your first question comes from the line of Ian Lapey from Gabelli Funds.

Perguntas e respostas

John Lapey

Congratulations on another strong quarter. Can you just talk about, obviously, during the quarter, there was a sharp increase in interest rates, particularly the 10-year mortgage rates. Can you just talk about the impact that, that had on the -- both the loan and deposit business?

Robert McCormick

Certainly, the change affected us in some ways, Ian, but we've always maintained a pretty liquid position and stay well capitalized. So we kind of let some of it run off a little bit and work our way the higher-priced stuff and work our way back into it. So I think it's been a very effective thing for us. Some people are going a little bit longer on CDs and some of the loan volumes are down. But as I said in my introduction was that we're trying to pick up more equity loans and do more business that way. And we've been successful at it so far.

John Lapey

Did you see sort of just a in terms of customer behavior, just any type of like freezing in terms of plans to either refi or purchase a new home?

Robert McCormick

No. You're talking about encouraging people to refi or...

John Lapey

Yes. What you're seeing in terms of customer behavior given the sharp increase in rates.

Robert McCormick

We operate in pretty conservative areas, especially in upstate New York. So we have not seen a real change in customer behavior.

John Lapey

Okay. And then next, on credit. First, congratulations on another quarter of net recoveries. Very impressive. Just given -- and you mentioned the allowance -- the increase in the allowance was driven mostly by sort of a deteriorating economic outlook. Can you just talk about sort of how you're positioning the loan portfolio for a more challenging environment and what you're sort of focused most on in terms of potential risk there?

Robert McCormick

I mean, our underwriting is always conservative, Ian. So we're staying the course and trying not to get crazy with regard to any of the loans are being made. We're watching everybody around us kind of change their stripes to kind of do think different things. We're trying to stay the course. And part of that allowance increase is driven by loan growth so that we're back funding that through the CECL model. So between the combination of the 2 factors, and Mike can tell you 100x more than I can tell you about it. But between a combination of a few factors and the loan growth, that's how we ended up. But our customers have come to know us and come to know what to expect of us, and we're pretty comfortable with where we're at.

Operator

This concludes our question-and-answer session. I would like to turn the conference back over to Robert J. McCormick for any closing remarks.

Robert McCormick

Thank you for your interest in our company. I hope you have a great day.

Operator

This concludes today's call. Thank you for attending today's presentation. You may now disconnect.