TrustCo Bank (TRST) in Glenville, N.Y., reported higher quarterly profits because of loan growth and improved asset quality.
The $4.5 billion-asset company's fourth-quarter earnings rose 8% from a year earlier, to $10.6 million. Earnings per share of 11 cents were in line with the average estimate of analysts polled by Bloomberg.
Net interest income rose 3% from a year earlier, to $34.5 million, because of strong loan growth. Average loans grew by 8.6% compared to the end of 2012, to $227.1 million. Higher income from mortgage-backed securities and collateralized mortgage obligations also contributed to the increase. The company's net interest margin compressed by 6 basis points from a year earlier, to 3.15%.
Noninterest income fell 23% from a year earlier, to $4.8 million, because of lower revenue from financial services, customer services and gains on securities transactions.
Noninterest expenses fell 1.4% from a year earlier, to $20.9 million.
TrustCo halved its loan-loss provision from the fourth quarter of 2012, to $1.5 million. Net chargeoffs fell 38% from a year earlier, to $1.5 million, because of improved loan performance in Florida.