Executive Snapshot:
TrustCo Bank Corp NY (TrustCo)
(Nasdaq:TRST) today announced second quarter of 2017 net income of
$12.2 million compared to $10.5 million for the second quarter of
2016, an increase of 17.0%.
Summary
Robert J. McCormick, President and Chief Executive
Officer noted, “We are pleased to be able to report a 17% increase
in net income in the second quarter of 2017 as compared to the
second quarter of 2016. Improved revenue growth and expense
control combined to produce a solid quarter and an encouraging
first half of 2017. Our focus on traditional lending criteria
and conservative balance sheet management has enabled us to produce
consistent earnings, maintain strong liquidity and capital and
allowed us to continue to grow our business and take advantage of
changes in market and competitive conditions. In terms of our
core business, we continue to add customer relationships, which
ultimately drive future growth. We will continue to take
advantage of opportunities as they are presented during the balance
of 2017 and beyond.”
TrustCo saw continued solid loan growth in the
second quarter of 2017 compared to the prior year, led by an
increase in residential mortgages. Loan portfolio expansion
was funded by a combination of utilizing a portion of our strong
cash balances and by the growth of our deposit base. The
continued shift toward loans helped offset the margin impact from
continued comparatively low yields on cash and investments.
Recent decisions by the Federal Reserve to raise short term
interest rates have contributed to our results and will provide a
further benefit in the second half of 2017 and beyond. The
growth in average deposits in the second quarter of 2017 versus the
prior year was led by lower cost checking and savings
deposits. TrustCo’s strong liquidity position continues to
allow it to take advantage of opportunities as they arise.
Asset quality measures improved versus June 30,
2016, with nonperforming assets (NPAs) declining $4.7 million.
Details
Average loans were up $150.1 million or 4.5% in the second
quarter of 2017 over the same period in 2016. Average residential
loans, our primary lending focus, were up $200.0 million or 7.2% in
the second quarter of 2017, over the same period in 2016.
Overall loan growth was constrained by a $15.6 million decline in
average commercial loans, which have become less attractive on a
risk adjusted basis, and a $34.0 million decline in average
outstandings on home equity lines of credit, as well as a small
decline in installment loans. Average deposits were up $36.0
million or 0.9% for the second quarter of 2017 over the same period
a year earlier. The increase in deposits came from core
deposit accounts, which consist of checking, savings and money
market deposits, with checking and savings entirely responsible for
the growth within core deposits. Average core deposits
increased $110.3 million from the second quarter of 2016 to the
second quarter of 2017, while average time deposit balances were
down. Within core, money market balances were down $2.6
million, while checking was up $100.2 million (including interest
bearing and non-interest bearing balances) and savings were up
$12.7 million. Core deposits typically represent longer term
customer relationships and are generally lower cost than time
deposits. The cost of interest bearing deposits declined from
0.38% in the second quarter of 2016 to 0.34% in the second quarter
of 2017. The shift out of money market balances was also
beneficial, as that category is the most expensive type of core
deposit. Mr. McCormick noted that, “The year-over-year growth
of our loans and core deposit base reflect the long term strategic
focus of the Company.”
For the second quarter of 2017, return on average
assets and return on average equity were 1.00% and 11.05%,
respectively, compared to 0.88% and 9.88% for the second quarter of
2016. Diluted earnings per share were $0.127 for the second
quarter of 2017, compared to $0.109 for the second quarter of
2016. As previously discussed, some operating costs remain at
elevated levels in response to regulatory requirements, however
overall expense control remains a key area of focus. Total
operating expenses declined by $1.1 million in the second quarter
of 2017 as compared to the second quarter of 2016, led by lower
deposit insurance, ORE costs and equipment expense. The
decline in expenses coupled with $1.5 million of revenue growth
over the same period resulted in the bottom line improvement
noted. We anticipate being able to control expense growth
effectively in the second half of 2017. Some of the costs
associated with regulatory issues will be recurring, but others
will diminish over time.
“While some banks have backed away from branches, a
customer-friendly branch franchise continues to be the key to our
long term plans. We continue to make good progress expanding
loans and deposits throughout our entire branch network. We
expect that trend to continue as the newer branches continue to
mature.”
“At June 30, 2017, our average deposits per branch were $29.2
million, compared to $28.8 million a year earlier. We have
always designed our branches to be smaller and more cost effective
than those built by many of our competitors. We use open
floor plans that help maximize the value of our branches. We
remain mindful that fully achieving our goals for newer branches
will take time and continued work. We believe success in
growing customer relationships provides basic building blocks that
will help drive profit growth for the coming years.”
Asset quality and loan loss reserve measures improved versus
June 30, 2016. Nonperforming loans (NPLs) were $24.5 million
at June 30, 2017, compared to $28.2 million at June 30, 2016.
NPLs were equal to 0.70% of total loans at June 30, 2017, compared
to 0.84% at June 30, 2016. The coverage ratio, or allowance
for loan losses to NPLs, was 180.0% at June 30, 2017, compared to
156.0% at June 30, 2016. Nonperforming assets (NPAs) were
$28.1 million at June 30, 2017 compared to $32.8 million at June
30, 2016. The ratio of loan loss allowance to total loans was
1.26% as of June 30, 2017, compared to 1.32% at June 30, 2016 and
reflects both the improvement in asset quality and economic
conditions in our lending areas. The allowance for loan
losses was $44.2 million at June 30, 2017 compared to $44.1 million
at June 30, 2016. The provision for loan losses was $550
thousand for the second quarter of 2017, compared to $800 thousand
in the second quarter of 2016. Net chargeoffs for the second
quarter of 2017 decreased versus the second quarter of 2016,
falling to $436 thousand from $1.1 million in the year earlier
period. The annualized net chargeoff ratio was 0.05% for the
second quarter of 2017, compared to 0.14% in the second quarter of
2016, remaining at the lowest level since the first quarter of
2008.
The net interest margin for the second quarter of 2017 was
3.21%, up twelve basis points versus the second quarter of 2016, as
increases in short term interest rates led to significantly higher
earnings on cash, while slightly better returns were also achieved
in the investment portfolio. Loan yields did decline, but
that was more than offset by higher volumes in terms of
income. During the same period, the cost of interest bearing
liabilities declined, reflecting TrustCo’s strong funding base.
For the first half of 2017, net income was $23.2 million, up
11.1% as compared to $20.9 million in the first half of 2016, or
$0.241 and $0.219, respectively, per diluted share.
At June 30, 2017 the equity to asset ratio was
9.09%, compared to 8.91% at June 30, 2016. Book value per
share at June 30, 2017 was $4.66 compared to $4.51 a year
earlier.
TrustCo Bank Corp NY is a $4.9 billion savings and
loan holding company and through its subsidiary, Trustco Bank,
operated 144 offices in New York, New Jersey, Vermont,
Massachusetts, and Florida at June 30, 2017.
In addition, the Bank’s Financial Services Department offers a
full range of investment services, retirement planning and trust
and estate administration services. The common shares of TrustCo
are traded on the NASDAQ Global Select Market under the symbol
TRST.
A conference call to discuss Second quarter 2017 results will be
held at 9:00 a.m. Eastern Time on July 24, 2017. Those
wishing to participate in the call may dial toll-free
1-888-339-0764. International callers must dial
1-412-902-4195. Please ask to be joined into the
TrustCo Bank Corp NY / TRST call. A replay of the call will
be available for thirty days by dialing 1-877-344-7529
(1-412-317-0088 for international callers), Conference Number
10110582. The call will also be audio webcast at:
http://services.choruscall.com/links/trst170724.html, and will be
available for one year.
Safe Harbor Statement
All statements in this news release that are not
historical are forward-looking statements within the meaning of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements can be identified by words such as "anticipate,"
"intend," "plan," "goal," "seek," "believe," "project," "estimate,"
"expect," "strategy," "future," "likely," "may," "should," "will"
and similar references to future periods. Examples of
forward-looking statements include, among others, statements we
make regarding our expectations for our performance during 2017,
the impact of Federal Reserve actions regarding interest rates and
the growth of loans and deposits throughout our branch network, our
ability to capitalize on economic changes in the areas in which we
operate and the extent to which higher expenses to fulfill
operating and regulatory requirements recur or diminish over
time. Such forward-looking statements are subject to factors
that could cause actual results to differ materially for TrustCo
from those discussed. TrustCo wishes to caution readers not to
place undue reliance on any such forward-looking statements, which
speak only as of the date made. The following important factors,
among others, in some cases have affected and in the future could
affect TrustCo’s actual results and could cause TrustCo’s actual
financial performance to differ materially from that expressed in
any forward-looking statement: our ability to continue to
originate a significant volume of one-to-four family mortgage loans
in our market areas; our ability to continue to maintain
noninterest expense and other overhead costs at reasonable levels
relative to income; our ability to comply with the supervisory
agreement entered into with Trustco Bank’s regulator and potential
regulatory actions if we fail to comply; restrictions or conditions
imposed by our regulators on our operations that may make it more
difficult for us to achieve our goals; the future earnings and
capital levels of Trustco Bank and the continued ability of Trustco
Bank under regulatory rules and the supervisory agreement to
distribute capital to TrustCo, which could affect our ability to
pay dividends; results of supervisory monitoring or examinations of
Trustco Bank and TrustCo by our respective regulators; our ability
to make accurate assumptions and judgments regarding the credit
risks associated with lending and investing activities; the effect
of changes in financial services laws and regulations and the
impact of other governmental initiatives affecting the financial
services industry; the effects of, and changes in, trade, monetary
and fiscal policies and laws, including interest rate policies of
the Federal Reserve Board, inflation, interest rates, market and
monetary fluctuations; adverse conditions on the securities markets
that lead to impairment in the value of securities in our
investment portfolio; changes in law and policy accompanying the
new presidential administration and uncertainty or speculation
pending the enactment of such changes; the perceived overall value
of our products and services by users, including in comparison to
competitors’ products and services and the willingness of current
and prospective customers to substitute competitors’ products and
services for our products and services; ; changes in consumer
spending, borrowing and saving habits; technological changes and
electronic, cyber, and physical security breaches; real estate and
collateral values; changes in accounting policies and practices, as
may be adopted by the bank regulatory agencies, the FASB or PCAOB;
changes in local market areas and general business and economic
trends, as well as changes in consumer spending and saving habits;
our success at managing the risks involved in the foregoing and
managing our business; and other risks and uncertainties under the
heading “Risk Factors” in our most recent annual report on Form
10-K and, if any, in our subsequent quarterly reports on Form 10-Q
or other securities filings.
TRUSTCO BANK
CORP NY |
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GLENVILLE,
NY |
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FINANCIAL
HIGHLIGHTS |
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(dollars in thousands,
except per share data) |
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(Unaudited) |
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Three Months Ended |
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06/30/17 |
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03/31/17 |
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06/30/16 |
Summary of
operations |
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Net
interest income (TE) |
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$ |
38,553 |
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37,413 |
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36,311 |
Provision
for loan losses |
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550 |
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600 |
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800 |
Net gain
on securities transactions |
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- |
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- |
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668 |
Noninterest income, excluding net gain on securities
transactions |
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4,504 |
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4,727 |
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4,531 |
Noninterest expense |
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22,913 |
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24,019 |
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23,974 |
Net
income |
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12,240 |
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10,947 |
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10,464 |
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Per common share |
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Net
income per share: |
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-
Basic |
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$ |
0.127 |
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0.114 |
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0.110 |
-
Diluted |
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0.127 |
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0.114 |
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0.109 |
Cash dividends |
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0.066 |
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0.066 |
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0.066 |
Book value at period
end |
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4.66 |
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4.57 |
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4.51 |
Market price at period
end |
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7.75 |
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7.85 |
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6.41 |
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At period end |
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Full time
equivalent employees |
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813 |
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802 |
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801 |
Full
service banking offices |
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144 |
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144 |
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145 |
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Performance ratios |
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Return on
average assets |
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1.00 |
% |
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0.91 |
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0.88 |
Return on
average equity |
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11.05 |
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10.17 |
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9.88 |
Efficiency (1) |
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53.33 |
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55.81 |
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57.70 |
Net
interest spread (TE) |
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3.15 |
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3.08 |
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3.03 |
Net
interest margin (TE) |
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3.21 |
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3.14 |
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3.09 |
Dividend
payout ratio |
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51.48 |
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57.47 |
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59.89 |
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Capital ratio at period
end |
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Consolidated equity to assets |
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9.09 |
% |
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8.98 |
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8.91 |
Consolidated tangible equity to tangible assets (2) |
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9.08 |
% |
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8.97 |
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8.90 |
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Asset quality analysis
at period end |
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Nonperforming loans to total loans |
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0.70 |
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0.77 |
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0.84 |
Nonperforming assets to total assets |
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0.57 |
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0.61 |
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0.68 |
Allowance
for loan losses to total loans |
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1.26 |
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1.28 |
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1.32 |
Coverage
ratio (3) |
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1.8x |
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1.7 |
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1.6 |
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(1)
Non-GAAP measure; calculated as noninterest expense (excluding ORE
income/expense) |
divided by taxable
equivalent net interest income plus noninterest income |
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less gain on sale of
nonperforming loans). |
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(2) Non-GAAP
measure; calculated as total equity less $553 of intangible assets
divided by |
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total assets less $553
of intangible assets. |
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(3) Calculated as
allowance for loan losses divided by total nonperforming
loans. |
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TE = Taxable
equivalent. |
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FINANCIAL
HIGHLIGHTS, Continued |
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(dollars in
thousands, except per share data) |
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(Unaudited) |
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Six Months Ended |
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06/30/17 |
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06/30/16 |
Summary of
operations |
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Net
interest income (TE) |
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$ |
75,966 |
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72,508 |
Provision
for loan losses |
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1,150 |
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1,600 |
Net gain
on securities transactions |
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- |
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668 |
Noninterest income, excluding net gain on securities
transactions |
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9,231 |
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9,103 |
Noninterest expense |
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46,932 |
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47,412 |
Net
income |
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23,187 |
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20,875 |
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Per common share |
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Net
income per share: |
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-
Basic |
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$ |
0.242 |
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0.219 |
-
Diluted |
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0.241 |
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0.219 |
Cash dividends |
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0.131 |
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0.131 |
Book value at period
end |
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4.66 |
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4.51 |
Market price at period
end |
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7.75 |
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6.41 |
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Performance ratios |
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Return on
average assets |
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0.96 |
% |
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0.88 |
Return on
average equity |
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10.62 |
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9.93 |
Efficiency (1) |
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54.56 |
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56.96 |
Net
interest spread (TE) |
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3.11 |
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3.05 |
Net
interest margin (TE) |
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3.17 |
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3.11 |
Dividend
payout ratio |
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54.31 |
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60.00 |
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(1) Non-GAAP
measure; calculated as noninterest expense (excluding ORE
income/expense) |
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divided by taxable
equivalent net interest income plus noninterest income |
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less gain on sale of
nonperforming loans). |
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TE = Taxable
equivalent. |
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CONSOLIDATED
STATEMENTS OF INCOME |
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(dollars in
thousands, except per share data) |
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(Unaudited) |
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Three Months Ended |
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6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
Interest and dividend
income: |
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Interest and fees on
loans |
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$ |
36,662 |
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36,044 |
36,251 |
36,171 |
35,652 |
Interest and dividends
on securities available for sale: |
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U. S. government
sponsored enterprises |
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607 |
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595 |
422 |
408 |
404 |
State and political
subdivisions |
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11 |
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12 |
12 |
13 |
13 |
Mortgage-backed
securities and collateralized mortgage obligations-residential |
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1,944 |
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1,958 |
1,849 |
1,829 |
2,169 |
Corporate bonds |
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154 |
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151 |
149 |
97 |
- |
Small Business
Administration-guaranteed participation securities |
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|
394 |
|
415 |
430 |
445 |
450 |
Mortgage-backed
securities and collateralized mortgage obligations-commercial |
|
|
21 |
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23 |
23 |
36 |
38 |
Other securities |
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4 |
|
4 |
4 |
4 |
4 |
Total
interest and dividends on securities available for sale |
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3,135 |
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3,158 |
2,889 |
2,832 |
3,078 |
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Interest on held to
maturity securities: |
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Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
296 |
|
316 |
331 |
347 |
374 |
Corporate bonds |
|
|
154 |
|
154 |
153 |
156 |
154 |
Total
interest on held to maturity securities |
|
|
450 |
|
470 |
484 |
503 |
528 |
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Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
134 |
|
134 |
133 |
131 |
118 |
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Interest on federal
funds sold and other short-term investments |
|
|
1,727 |
|
1,246 |
865 |
866 |
832 |
Total
interest income |
|
|
42,108 |
|
41,052 |
40,622 |
40,503 |
40,208 |
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|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
Interest on
deposits: |
|
|
|
|
|
|
|
Interest-bearing
checking |
|
|
134 |
|
124 |
123 |
120 |
116 |
Savings |
|
|
435 |
|
430 |
436 |
504 |
604 |
Money market deposit
accounts |
|
|
468 |
|
466 |
459 |
463 |
467 |
Time deposits |
|
|
2,181 |
|
2,283 |
2,406 |
2,468 |
2,460 |
Interest on short-term
borrowings |
|
|
349 |
|
349 |
291 |
281 |
262 |
Total
interest expense |
|
|
3,567 |
|
3,652 |
3,715 |
3,836 |
3,909 |
|
|
|
|
|
|
|
|
Net
interest income |
|
|
38,541 |
|
37,400 |
36,907 |
36,667 |
36,299 |
|
|
|
|
|
|
|
|
Provision for loan
losses |
|
|
550 |
|
600 |
600 |
750 |
800 |
Net interest income
after provision for loan losses |
|
|
37,991 |
|
36,800 |
36,307 |
35,917 |
35,499 |
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
Trustco Financial
Services income |
|
|
1,425 |
|
1,858 |
1,422 |
1,347 |
1,512 |
Fees for services to
customers |
|
|
2,797 |
|
2,637 |
2,795 |
2,664 |
2,737 |
Net gain on securities
transactions |
|
|
- |
|
- |
- |
- |
668 |
Other |
|
|
282 |
|
232 |
295 |
718 |
282 |
Total
noninterest income |
|
|
4,504 |
|
4,727 |
4,512 |
4,729 |
5,199 |
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
9,559 |
|
10,210 |
9,576 |
8,995 |
8,934 |
Net occupancy
expense |
|
|
4,267 |
|
4,109 |
4,185 |
3,887 |
3,918 |
Equipment expense |
|
|
1,428 |
|
1,556 |
1,370 |
1,596 |
1,840 |
Professional
services |
|
|
1,963 |
|
1,928 |
1,997 |
1,959 |
2,098 |
Outsourced
services |
|
|
1,500 |
|
1,500 |
1,775 |
1,465 |
1,425 |
Advertising
expense |
|
|
607 |
|
713 |
727 |
489 |
570 |
FDIC and other
insurance |
|
|
1,012 |
|
1,047 |
901 |
1,127 |
1,949 |
Other real estate
(income) expense, net |
|
|
(4 |
) |
499 |
721 |
895 |
423 |
Other |
|
|
2,581 |
|
2,457 |
2,113 |
2,636 |
2,817 |
Total noninterest
expenses |
|
|
22,913 |
|
24,019 |
23,365 |
23,049 |
23,974 |
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
19,582 |
|
17,508 |
17,454 |
17,597 |
16,724 |
Income taxes |
|
|
7,342 |
|
6,561 |
6,656 |
6,667 |
6,260 |
|
|
|
|
|
|
|
|
Net income |
|
$ |
12,240 |
|
10,947 |
10,798 |
10,930 |
10,464 |
Net income per common
share: |
|
|
|
|
|
|
|
-
Basic |
|
$ |
0.127 |
|
0.114 |
0.113 |
0.114 |
0.110 |
|
|
|
|
|
|
|
|
-
Diluted |
|
|
0.127 |
|
0.114 |
0.113 |
0.114 |
0.109 |
|
|
|
|
|
|
|
|
Average basic shares
(in thousands) |
|
|
96,003 |
|
95,879 |
95,732 |
95,603 |
95,487 |
Average diluted shares
(in thousands) |
|
|
96,073 |
|
95,987 |
95,877 |
95,722 |
95,580 |
|
|
|
|
|
|
|
|
Note: Taxable
equivalent net interest income |
|
$ |
38,553 |
|
37,413 |
36,921 |
36,681 |
36,311 |
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
6/30/2017 |
6/30/2016 |
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
Interest and fees on
loans |
|
|
$ |
72,706 |
71,257 |
Interest and dividends
on securities available for sale: |
|
|
|
|
|
U. S. government
sponsored enterprises |
|
|
|
1,202 |
659 |
State and political
subdivisions |
|
|
|
23 |
27 |
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
|
3,902 |
4,285 |
Corporate bonds |
|
|
|
305 |
- |
Small Business
Administration-guaranteed participation securities |
|
|
|
809 |
926 |
Mortgage-backed
securities and collateralized mortgage obligations-commercial |
|
|
|
44 |
74 |
Other securities |
|
|
|
8 |
8 |
Total
interest and dividends on securities available for sale |
|
|
|
6,293 |
5,979 |
|
|
|
|
|
|
Interest on held to
maturity securities: |
|
|
|
|
|
Mortgage-backed
securities-residential |
|
|
|
612 |
775 |
Corporate bonds |
|
|
|
308 |
308 |
Total
interest on held to maturity securities |
|
|
|
920 |
1,083 |
|
|
|
|
|
|
Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
|
268 |
238 |
|
|
|
|
|
|
Interest on federal
funds sold and other short-term investments |
|
|
|
2,973 |
1,677 |
Total
interest income |
|
|
|
83,160 |
80,234 |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
Interest on
deposits: |
|
|
|
|
|
Interest-bearing
checking |
|
|
|
258 |
230 |
Savings |
|
|
|
865 |
1,208 |
Money market deposit
accounts |
|
|
|
934 |
962 |
Time deposits |
|
|
|
4,464 |
4,833 |
Interest on short-term
borrowings |
|
|
|
698 |
519 |
Total
interest expense |
|
|
|
7,219 |
7,752 |
|
|
|
|
|
|
Net
interest income |
|
|
|
75,941 |
72,482 |
|
|
|
|
|
|
Provision for loan
losses |
|
|
|
1,150 |
1,600 |
Net interest income
after provision for loan losses |
|
|
|
74,791 |
70,882 |
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
Trust department
income |
|
|
|
3,283 |
3,117 |
Fees for services to
customers |
|
|
|
5,434 |
5,398 |
Net gain on securities
transactions |
|
|
|
- |
668 |
Other |
|
|
|
514 |
588 |
Total
noninterest income |
|
|
|
9,231 |
9,771 |
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
Salaries and employee
benefits |
|
|
|
19,769 |
17,937 |
Net occupancy
expense |
|
|
|
8,376 |
8,006 |
Equipment expense |
|
|
|
2,984 |
3,354 |
Professional
services |
|
|
|
3,891 |
4,244 |
Outsourced
services |
|
|
|
3,000 |
2,976 |
Advertising
expense |
|
|
|
1,320 |
1,299 |
FDIC and other
insurance |
|
|
|
2,059 |
3,939 |
Other real estate
expense, net |
|
|
|
495 |
942 |
Other |
|
|
|
5,038 |
4,715 |
Total
noninterest expenses |
|
|
|
46,932 |
47,412 |
|
|
|
|
|
|
Income before
taxes |
|
|
|
37,090 |
33,241 |
Income taxes |
|
|
|
13,903 |
12,366 |
|
|
|
|
|
|
Net income |
|
|
$ |
23,187 |
20,875 |
|
|
|
|
|
|
Net income per Common
Share: |
|
|
|
|
|
-
Basic |
|
|
$ |
0.242 |
0.219 |
|
|
|
|
|
|
-
Diluted |
|
|
|
0.241 |
0.219 |
|
|
|
|
|
|
Average basic shares
(thousands) |
|
|
|
95,944 |
95,426 |
Average diluted shares
(thousands) |
|
|
|
96,034 |
95,496 |
|
|
|
|
|
|
Note: Taxable
equivalent net interest income |
|
|
$ |
75,966 |
72,508 |
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
43,783 |
|
41,352 |
|
48,719 |
|
42,296 |
|
39,787 |
|
Federal funds sold and
other short term investments |
|
|
663,360 |
|
641,839 |
|
658,555 |
|
622,132 |
|
718,609 |
|
Total
cash and cash equivalents |
|
|
707,143 |
|
683,191 |
|
707,274 |
|
664,428 |
|
758,396 |
|
|
|
|
|
|
|
|
Securities available
for sale: |
|
|
|
|
|
|
U. S. government
sponsored enterprises |
|
|
128,386 |
|
162,341 |
|
117,266 |
|
116,327 |
|
116,595 |
|
States and political
subdivisions |
|
|
536 |
|
887 |
|
886 |
|
970 |
|
974 |
|
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
352,591 |
|
357,683 |
|
372,308 |
|
400,575 |
|
404,138 |
|
Small Business
Administration-guaranteed participation securities |
|
|
72,858 |
|
75,429 |
|
78,499 |
|
84,687 |
|
87,740 |
|
Mortgage-backed
securities and collateralized mortgage obligations-commercial |
|
|
9,903 |
|
9,923 |
|
10,011 |
|
10,233 |
|
10,374 |
|
Corporate bonds |
|
|
40,498 |
|
40,612 |
|
40,705 |
|
41,025 |
|
- |
|
Other securities |
|
|
685 |
|
685 |
|
685 |
|
685 |
|
685 |
|
Total
securities available for sale |
|
|
605,457 |
|
647,560 |
|
620,360 |
|
654,502 |
|
620,506 |
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
31,211 |
|
33,276 |
|
35,500 |
|
38,044 |
|
40,702 |
|
Corporate bonds |
|
|
9,997 |
|
9,994 |
|
9,990 |
|
9,986 |
|
9,982 |
|
Total
held to maturity securities |
|
|
41,208 |
|
43,270 |
|
45,490 |
|
48,030 |
|
50,684 |
|
|
|
|
|
|
|
|
|
Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
9,723 |
|
9,579 |
|
9,579 |
|
9,579 |
|
9,579 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
Commercial |
|
|
183,035 |
|
184,451 |
|
191,194 |
|
189,795 |
|
195,698 |
|
Residential mortgage
loans |
|
|
2,999,306 |
|
2,929,928 |
|
2,895,733 |
|
2,845,876 |
|
2,786,951 |
|
Home equity line of
credit |
|
|
316,674 |
|
326,280 |
|
334,841 |
|
343,445 |
|
352,069 |
|
Installment loans |
|
|
8,458 |
|
8,277 |
|
8,818 |
|
8,515 |
|
8,476 |
|
Loans, net of deferred
net costs |
|
|
3,507,473 |
|
3,448,936 |
|
3,430,586 |
|
3,387,631 |
|
3,343,194 |
|
Less: |
|
|
|
|
|
|
Allowance for loan
losses |
|
|
44,162 |
|
44,048 |
|
43,890 |
|
43,950 |
|
44,064 |
|
Net loans |
|
|
3,463,311 |
|
3,404,888 |
|
3,386,696 |
|
3,343,681 |
|
3,299,130 |
|
|
|
|
|
|
|
|
|
Bank premises and
equipment, net |
|
|
35,174 |
|
35,175 |
|
35,466 |
|
36,110 |
|
36,793 |
|
Other assets |
|
|
58,466 |
|
63,080 |
|
63,941 |
|
56,519 |
|
55,825 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
4,920,482 |
|
4,886,743 |
|
4,868,806 |
|
4,812,849 |
|
4,830,913 |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Demand |
|
$ |
390,120 |
|
373,930 |
|
377,755 |
|
380,090 |
|
376,669 |
|
Interest-bearing
checking |
|
|
871,004 |
|
838,936 |
|
815,534 |
|
785,118 |
|
766,322 |
|
Savings accounts |
|
|
1,285,886 |
|
1,287,802 |
|
1,271,449 |
|
1,277,734 |
|
1,282,006 |
|
Money market deposit
accounts |
|
|
572,580 |
|
583,909 |
|
571,962 |
|
566,097 |
|
577,063 |
|
Time deposits |
|
|
1,088,824 |
|
1,113,892 |
|
1,159,463 |
|
1,159,199 |
|
1,178,567 |
|
Total
deposits |
|
|
4,208,414 |
|
4,198,469 |
|
4,196,163 |
|
4,168,238 |
|
4,180,627 |
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
233,621 |
|
220,946 |
|
209,406 |
|
179,204 |
|
190,542 |
|
Accrued expenses and
other liabilities |
|
|
31,081 |
|
28,628 |
|
30,551 |
|
29,799 |
|
29,479 |
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
4,473,116 |
|
4,448,043 |
|
4,436,120 |
|
4,377,241 |
|
4,400,648 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
Capital stock |
|
|
99,511 |
|
99,493 |
|
99,214 |
|
99,121 |
|
99,071 |
|
Surplus |
|
|
172,603 |
|
172,628 |
|
171,425 |
|
171,093 |
|
171,174 |
|
Undivided profits |
|
|
212,112 |
|
206,173 |
|
201,517 |
|
197,013 |
|
192,356 |
|
Accumulated other
comprehensive (loss) income, net of tax |
|
|
(3,593 |
) |
(5,568 |
) |
(6,251 |
) |
2,328 |
|
2,395 |
|
Treasury stock at
cost |
|
|
(33,267 |
) |
(34,026 |
) |
(33,219 |
) |
(33,947 |
) |
(34,731 |
) |
|
|
|
|
|
|
|
Total
shareholders' equity |
|
|
447,366 |
|
438,700 |
|
432,686 |
|
435,608 |
|
430,265 |
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
4,920,482 |
|
4,886,743 |
|
4,868,806 |
|
4,812,849 |
|
4,830,913 |
|
|
|
|
|
|
|
|
|
Outstanding shares (in
thousands) |
|
|
96,015 |
|
95,917 |
|
95,780 |
|
95,614 |
|
95,493 |
|
NONPERFORMING
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
06/30/17 |
03/31/17 |
12/31/16 |
09/30/16 |
06/30/16 |
New York and
other states* |
|
|
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
1,711 |
|
1,858 |
|
1,843 |
|
2,366 |
|
2,690 |
|
Real
estate mortgage - 1 to 4 family |
|
|
|
20,639 |
|
22,772 |
|
21,198 |
|
21,678 |
|
23,559 |
|
Installment |
|
|
|
25 |
|
41 |
|
48 |
|
70 |
|
49 |
|
Total non-accrual
loans |
|
|
|
22,375 |
|
24,671 |
|
23,089 |
|
24,114 |
|
26,298 |
|
Other nonperforming
real estate mortgages - 1 to 4 family |
|
|
|
41 |
|
41 |
|
42 |
|
44 |
|
45 |
|
Total nonperforming
loans |
|
|
|
22,416 |
|
24,712 |
|
23,131 |
|
24,158 |
|
26,343 |
|
Other real estate
owned |
|
|
|
3,585 |
|
3,191 |
|
4,268 |
|
4,768 |
|
4,602 |
|
Total nonperforming
assets |
|
|
$ |
26,001 |
|
27,903 |
|
27,399 |
|
28,926 |
|
30,945 |
|
|
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real
estate mortgage - 1 to 4 family |
|
|
|
2,112 |
|
1,712 |
|
1,929 |
|
1,844 |
|
1,900 |
|
Installment |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total non-accrual
loans |
|
|
|
2,112 |
|
1,712 |
|
1,929 |
|
1,844 |
|
1,900 |
|
Other nonperforming
real estate mortgages - 1 to 4 family |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming
loans |
|
|
|
2,112 |
|
1,712 |
|
1,929 |
|
1,844 |
|
1,900 |
|
Other real estate
owned |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming
assets |
|
|
$ |
2,112 |
|
1,712 |
|
1,929 |
|
1,844 |
|
1,900 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
1,711 |
|
1,858 |
|
1,843 |
|
2,366 |
|
2,690 |
|
Real
estate mortgage - 1 to 4 family |
|
|
|
22,751 |
|
24,484 |
|
23,127 |
|
23,522 |
|
25,459 |
|
Installment |
|
|
|
25 |
|
41 |
|
48 |
|
70 |
|
49 |
|
Total non-accrual
loans |
|
|
|
24,487 |
|
26,383 |
|
25,018 |
|
25,958 |
|
28,198 |
|
Other nonperforming
real estate mortgages - 1 to 4 family |
|
|
|
41 |
|
41 |
|
42 |
|
44 |
|
45 |
|
Total nonperforming
loans |
|
|
|
24,528 |
|
26,424 |
|
25,060 |
|
26,002 |
|
28,243 |
|
Other real estate
owned |
|
|
|
3,585 |
|
3,191 |
|
4,268 |
|
4,768 |
|
4,602 |
|
Total nonperforming
assets |
|
|
$ |
28,113 |
|
29,615 |
|
29,328 |
|
30,770 |
|
32,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net
Chargeoffs (Recoveries) |
|
|
|
|
|
|
|
|
|
|
|
|
06/30/17 |
03/31/17 |
12/31/16 |
09/30/16 |
06/30/16 |
New York and
other states* |
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
- |
|
64 |
|
(56 |
) |
353 |
|
67 |
|
Real estate mortgage -
1 to 4 family |
|
|
|
334 |
|
261 |
|
619 |
|
471 |
|
973 |
|
Installment |
|
|
|
37 |
|
31 |
|
55 |
|
37 |
|
77 |
|
Total net
chargeoffs |
|
|
$ |
371 |
|
356 |
|
618 |
|
861 |
|
1,117 |
|
|
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage -
1 to 4 family |
|
|
|
52 |
|
84 |
|
23 |
|
- |
|
16 |
|
Installment |
|
|
|
13 |
|
2 |
|
19 |
|
3 |
|
1 |
|
Total net
chargeoffs |
|
|
$ |
65 |
|
86 |
|
42 |
|
3 |
|
17 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
- |
|
64 |
|
(56 |
) |
353 |
|
67 |
|
Real estate mortgage -
1 to 4 family |
|
|
|
386 |
|
345 |
|
642 |
|
471 |
|
989 |
|
Installment |
|
|
|
50 |
|
33 |
|
74 |
|
40 |
|
78 |
|
Total net
chargeoffs |
|
|
$ |
436 |
|
442 |
|
660 |
|
864 |
|
1,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
06/30/17 |
03/31/17 |
12/31/16 |
09/30/16 |
06/30/16 |
|
|
|
|
|
|
|
|
|
Total nonperforming
loans(1) |
|
|
$ |
24,528 |
|
26,424 |
|
25,060 |
|
26,002 |
|
28,243 |
|
Total nonperforming
assets(1) |
|
|
|
28,113 |
|
29,615 |
|
29,328 |
|
30,770 |
|
32,845 |
|
Total net
chargeoffs(2) |
|
|
|
436 |
|
442 |
|
660 |
|
864 |
|
1,134 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses(1) |
|
|
|
44,162 |
|
44,048 |
|
43,890 |
|
43,950 |
|
44,064 |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans |
|
|
|
0.70 |
% |
0.77 |
% |
0.73 |
% |
0.77 |
% |
0.84 |
% |
Nonperforming assets to
total assets |
|
|
|
0.57 |
% |
0.61 |
% |
0.60 |
% |
0.64 |
% |
0.68 |
% |
Allowance for loan
losses to total loans |
|
|
|
1.26 |
% |
1.28 |
% |
1.28 |
% |
1.30 |
% |
1.32 |
% |
Coverage ratio(1) |
|
|
|
180.0 |
% |
166.7 |
% |
175.1 |
% |
169.0 |
% |
156.0 |
% |
Annualized net
chargeoffs to average loans(2) |
|
|
|
0.05 |
% |
0.05 |
% |
0.08 |
% |
0.10 |
% |
0.14 |
% |
Allowance for loan
losses to annualized net chargeoffs(2) |
|
|
|
25.3x |
|
24.9x |
|
16.6x |
|
12.7x |
|
9.7x |
|
|
|
|
|
|
|
|
|
|
* Includes New York,
New Jersey, Vermont and Massachusetts. |
|
|
|
|
|
|
|
|
(1) At
period-end |
|
|
|
|
|
|
|
|
(2) For the
period ended |
|
|
|
|
|
|
|
|
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS'
EQUITY- |
|
INTEREST RATES AND INTEREST DIFFERENTIAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
Three months ended |
|
|
|
Three months ended |
|
(Unaudited) |
|
|
June 30, 2017 |
|
|
|
June 30, 2016 |
|
|
|
|
Average |
|
Interest |
|
Average |
|
|
|
Average |
|
Interest |
|
Average |
|
|
|
|
Balance |
|
|
Rate |
|
|
|
Balance |
|
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available
for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government
sponsored enterprises |
|
$ |
153,552 |
|
|
607 |
|
1.58 |
% |
|
$ |
107,190 |
|
|
404 |
|
1.51 |
% |
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized mortgage obligations-residential |
|
|
359,085 |
|
|
1,944 |
|
2.17 |
|
|
|
445,162 |
|
|
2,169 |
|
1.95 |
|
State and political
subdivisions |
|
|
816 |
|
|
16 |
|
7.84 |
|
|
|
955 |
|
|
19 |
|
7.96 |
|
Corporate bonds |
|
|
42,699 |
|
|
154 |
|
1.44 |
|
|
|
- |
|
|
- |
|
- |
|
Small Business
Administration-guaranteed participation securities |
|
|
75,561 |
|
|
394 |
|
2.09 |
|
|
|
87,801 |
|
|
450 |
|
2.05 |
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized mortgage obligations-commercial |
|
|
10,003 |
|
|
21 |
|
0.84 |
|
|
|
10,321 |
|
|
38 |
|
1.47 |
|
Other |
|
|
685 |
|
|
4 |
|
2.34 |
|
|
|
677 |
|
|
4 |
|
2.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
securities available for sale |
|
|
642,401 |
|
|
3,140 |
|
1.96 |
|
|
|
652,106 |
|
|
3,084 |
|
1.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
short-term
Investments |
|
|
643,557 |
|
|
1,727 |
|
1.07 |
|
|
|
668,395 |
|
|
832 |
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
|
9,996 |
|
|
154 |
|
6.16 |
|
|
|
9,981 |
|
|
154 |
|
6.17 |
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized mortgage obligations-residential |
|
|
32,188 |
|
|
296 |
|
3.68 |
|
|
|
42,188 |
|
|
374 |
|
3.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
held to maturity securities |
|
|
42,184 |
|
|
450 |
|
4.27 |
|
|
|
52,169 |
|
|
528 |
|
4.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
9,709 |
|
|
134 |
|
5.52 |
|
|
|
9,576 |
|
|
118 |
|
4.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
|
183,382 |
|
|
2,401 |
|
5.24 |
|
|
|
198,938 |
|
|
2,563 |
|
5.15 |
|
Residential mortgage
loans |
|
|
2,958,994 |
|
|
30,943 |
|
4.18 |
|
|
|
2,759,024 |
|
|
29,725 |
|
4.31 |
|
Home equity lines of
credit |
|
|
320,872 |
|
|
3,131 |
|
3.90 |
|
|
|
354,897 |
|
|
3,179 |
|
3.58 |
|
Installment loans |
|
|
8,029 |
|
|
194 |
|
9.66 |
|
|
|
8,316 |
|
|
191 |
|
9.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
|
3,471,277 |
|
|
36,669 |
|
4.23 |
|
|
|
3,321,175 |
|
|
35,658 |
|
4.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest earning assets |
|
|
4,809,128 |
|
|
42,120 |
|
3.50 |
|
|
|
4,703,421 |
|
|
40,220 |
|
3.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
(44,429 |
) |
|
|
|
|
|
|
(44,754 |
) |
|
|
|
|
Cash & non-interest
earning assets |
|
|
130,998 |
|
|
|
|
|
|
|
136,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,895,697 |
|
|
|
|
|
|
$ |
4,795,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
checking accounts |
|
$ |
849,965 |
|
|
134 |
|
0.06 |
% |
|
$ |
759,546 |
|
|
116 |
|
0.06 |
% |
Money market
accounts |
|
|
577,464 |
|
|
468 |
|
0.32 |
|
|
|
580,100 |
|
|
467 |
|
0.32 |
|
Savings |
|
|
1,286,282 |
|
|
435 |
|
0.14 |
|
|
|
1,273,575 |
|
|
604 |
|
0.19 |
|
Time deposits |
|
|
1,102,777 |
|
|
2,181 |
|
0.79 |
|
|
|
1,177,084 |
|
|
2,460 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest bearing deposits |
|
|
3,816,488 |
|
|
3,218 |
|
0.34 |
|
|
|
3,790,305 |
|
|
3,647 |
|
0.38 |
|
Short-term
borrowings |
|
|
226,455 |
|
|
349 |
|
0.62 |
|
|
|
181,247 |
|
|
262 |
|
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest bearing liabilities |
|
|
4,042,943 |
|
|
3,567 |
|
0.35 |
|
|
|
3,971,552 |
|
|
3,909 |
|
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
380,611 |
|
|
|
|
|
|
|
370,781 |
|
|
|
|
|
Other liabilities |
|
|
28,026 |
|
|
|
|
|
|
|
27,121 |
|
|
|
|
|
Shareholders'
equity |
|
|
444,117 |
|
|
|
|
|
|
|
425,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
4,895,697 |
|
|
|
|
|
|
$ |
4,795,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
tax equivalent |
|
|
|
|
38,553 |
|
|
|
|
|
|
|
36,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
|
3.15 |
% |
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to total interest
earning assets) |
|
|
|
|
|
3.21 |
% |
|
|
|
|
|
3.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment |
|
|
|
|
(12 |
) |
|
|
|
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
|
38,541 |
|
|
|
|
|
|
|
36,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS'
EQUITY- |
|
INTEREST RATES AND INTEREST DIFFERENTIAL |
|
(dollars in
thousands) |
|
|
Six Months ended |
|
|
|
Six Months ended |
|
(Unaudited) |
|
|
June 30, 2017 |
|
|
|
June 30, 2016 |
|
|
|
|
Average |
|
Interest |
|
Average |
|
|
|
Average |
|
Interest |
|
Average |
|
|
|
|
Balance |
|
|
|
Rate |
|
|
|
Balance |
|
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available
for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government
sponsored enterprises |
|
$ |
148,054 |
|
|
1,202 |
|
1.62 |
% |
|
$ |
91,111 |
|
|
659 |
|
1.45 |
% |
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized mortgage obligations-residential |
|
|
363,496 |
|
|
3,902 |
|
2.15 |
|
|
|
428,831 |
|
|
4,285 |
|
2.00 |
|
State and political
subdivisions |
|
|
844 |
|
|
35 |
|
8.29 |
|
|
|
1,034 |
|
|
41 |
|
7.93 |
|
Corporate bonds |
|
|
42,143 |
|
|
305 |
|
1.45 |
|
|
|
- |
|
|
- |
|
- |
|
Small Business
Administration-guaranteed participation securities |
|
|
77,068 |
|
|
809 |
|
2.10 |
|
|
|
89,206 |
|
|
926 |
|
2.08 |
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized mortgage obligations-commercial |
|
|
10,046 |
|
|
44 |
|
0.88 |
|
|
|
10,357 |
|
|
74 |
|
1.43 |
|
Other |
|
|
685 |
|
|
8 |
|
2.34 |
|
|
|
682 |
|
|
8 |
|
2.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
securities available for sale |
|
|
642,336 |
|
|
6,305 |
|
1.96 |
|
|
|
621,221 |
|
|
5,993 |
|
1.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
short-term
Investments |
|
|
642,348 |
|
|
2,973 |
|
0.93 |
|
|
|
671,990 |
|
|
1,677 |
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
|
9,994 |
|
|
308 |
|
6.16 |
|
|
|
9,979 |
|
|
308 |
|
6.17 |
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized mortgage obligations-residential |
|
|
33,240 |
|
|
612 |
|
3.68 |
|
|
|
43,650 |
|
|
775 |
|
3.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
held to maturity securities |
|
|
43,234 |
|
|
920 |
|
4.26 |
|
|
|
53,629 |
|
|
1,083 |
|
4.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
9,645 |
|
|
268 |
|
5.56 |
|
|
|
9,527 |
|
|
238 |
|
5.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
|
185,474 |
|
|
4,830 |
|
5.21 |
|
|
|
200,152 |
|
|
5,180 |
|
5.18 |
|
Residential mortgage
loans |
|
|
2,935,620 |
|
|
61,310 |
|
4.18 |
|
|
|
2,742,918 |
|
|
59,348 |
|
4.33 |
|
Home equity lines of
credit |
|
|
325,579 |
|
|
6,216 |
|
3.82 |
|
|
|
356,857 |
|
|
6,358 |
|
3.56 |
|
Installment loans |
|
|
8,128 |
|
|
363 |
|
8.93 |
|
|
|
8,488 |
|
|
383 |
|
9.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
|
3,454,801 |
|
|
72,719 |
|
4.21 |
|
|
|
3,308,415 |
|
|
71,269 |
|
4.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest earning assets |
|
|
4,792,364 |
|
|
83,185 |
|
3.47 |
|
|
|
4,664,782 |
|
|
80,260 |
|
3.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
(44,333 |
) |
|
|
|
|
|
|
(45,013 |
) |
|
|
|
|
Cash & non-interest
earning assets |
|
|
130,575 |
|
|
|
|
|
|
|
136,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,878,606 |
|
|
|
|
|
|
$ |
4,755,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
checking accounts |
|
$ |
829,615 |
|
|
258 |
|
0.06 |
% |
|
$ |
747,322 |
|
|
230 |
|
0.06 |
% |
Money market
accounts |
|
|
578,728 |
|
|
934 |
|
0.32 |
|
|
|
591,937 |
|
|
962 |
|
0.33 |
|
Savings |
|
|
1,280,552 |
|
|
865 |
|
0.14 |
|
|
|
1,268,021 |
|
|
1,208 |
|
0.19 |
|
Time deposits |
|
|
1,118,274 |
|
|
4,464 |
|
0.80 |
|
|
|
1,155,773 |
|
|
4,833 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest bearing deposits |
|
|
3,807,169 |
|
|
6,521 |
|
0.34 |
|
|
|
3,763,053 |
|
|
7,233 |
|
0.38 |
|
Short-term
borrowings |
|
|
228,078 |
|
|
698 |
|
0.61 |
|
|
|
178,683 |
|
|
519 |
|
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest bearing liabilities |
|
|
4,035,247 |
|
|
7,219 |
|
0.36 |
|
|
|
3,941,736 |
|
|
7,752 |
|
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
375,610 |
|
|
|
|
|
|
|
364,503 |
|
|
|
|
|
Other liabilities |
|
|
27,408 |
|
|
|
|
|
|
|
27,019 |
|
|
|
|
|
Shareholders'
equity |
|
|
440,341 |
|
|
|
|
|
|
|
422,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
4,878,606 |
|
|
|
|
|
|
$ |
4,755,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
tax equivalent |
|
|
|
|
75,966 |
|
|
|
|
|
|
|
72,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
|
3.11 |
% |
|
|
|
|
|
3.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to total interest
earning assets) |
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment |
|
|
|
|
(25 |
) |
|
|
|
|
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
|
75,941 |
|
|
|
|
|
|
|
72,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures Reconciliation
Tangible equity as a percentage of tangible assets
at period end is a non-GAAP financial measure derived from
GAAP-based amounts. We calculate tangible equity and tangible
assets by excluding the balance of intangible assets from
shareholders’ equity and total assets, respectively. We calculate
tangible equity as a percentage of tangible assets at period end by
dividing tangible equity by tangible assets at period end. We
believe that this is consistent with the treatment by bank
regulatory agencies, which exclude intangible assets from the
calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of
expense control relative to revenue from net interest income and
fee income. We calculate the efficiency ratio by dividing
total noninterest expenses as determined under GAAP, but excluding
other real estate expense, net, by net interest income (fully
taxable equivalent) and total noninterest income as determined
under GAAP, but excluding net gains on the sale of nonperforming
loans and securities from this calculation. We believe that
this provides a reasonable measure of primary banking expenses
relative to primary banking revenue.
We believe that these non-GAAP financial measures
provide information that is important to investors and that is
useful in understanding our financial results. Our management
internally assesses our performance based, in part, on these
measures. However, these non-GAAP financial measures are
supplemental and not a substitute for an analysis based on GAAP
measures. As other companies may use different calculations for
these measures, this presentation may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of the non-GAAP measures of tangible common equity,
tangible book value per share, efficiency ratio, net income and net
income per share to the underlying GAAP numbers is set forth
below.
NON-GAAP
FINANCIAL MEASURES RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands,
except per share amounts) |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/17 |
03/31/17 |
06/30/16 |
|
|
|
Tangible Equity
to Tangible Assets |
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
4,920,482 |
|
4,886,743 |
|
4,830,913 |
|
|
|
|
Less: Intangible
assets |
|
|
|
553 |
|
553 |
|
553 |
|
|
|
|
Tangible
assets |
|
|
|
4,919,929 |
|
4,886,190 |
|
4,830,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
$ |
447,366 |
|
438,700 |
|
430,265 |
|
|
|
|
Less: Intangible
assets |
|
|
|
553 |
|
553 |
|
553 |
|
|
|
|
Tangible
equity |
|
|
|
446,813 |
|
438,147 |
|
429,712 |
|
|
|
|
Tangible Equity to
Tangible Assets |
|
|
|
9.08 |
% |
8.97 |
% |
8.90 |
% |
|
|
|
Equity to Assets |
|
|
|
9.09 |
% |
8.98 |
% |
8.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended |
|
Six Months Ended |
Efficiency
Ratio |
|
|
|
06/30/17 |
03/31/17 |
06/30/16 |
|
06/30/17 |
06/30/16 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
$ |
38,541 |
|
37,400 |
|
36,299 |
|
|
75,941 |
|
72,482 |
|
Taxable equivalent
adjustment |
|
|
|
12 |
|
13 |
|
12 |
|
|
25 |
|
26 |
|
Net interest income
(fully taxable equivalent) |
|
|
|
38,553 |
|
37,413 |
|
36,311 |
|
|
75,966 |
|
72,508 |
|
Non-interest
income |
|
|
|
4,504 |
|
4,727 |
|
5,199 |
|
|
9,231 |
|
9,771 |
|
Less: Net gain on
sale of nonperforming loans |
|
|
|
84 |
|
- |
|
24 |
|
|
84 |
|
24 |
|
Less: Net gain on
securities |
|
|
|
- |
|
- |
|
668 |
|
|
- |
|
668 |
|
Revenue
used for efficiency ratio |
|
|
|
42,973 |
|
42,140 |
|
40,818 |
|
|
85,113 |
|
81,587 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
expense |
|
|
|
22,913 |
|
24,019 |
|
23,974 |
|
|
46,932 |
|
47,412 |
|
Less: Other real
estate (income) expense, net |
|
|
|
(4 |
) |
499 |
|
423 |
|
|
495 |
|
942 |
|
Expense
used for efficiency ratio |
|
|
|
22,917 |
|
23,520 |
|
23,551 |
|
|
46,437 |
|
46,470 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio |
|
|
|
53.33 |
% |
55.81 |
% |
57.70 |
% |
|
54.56 |
% |
56.96 |
% |
Contact:
Kevin T. Timmons
Vice President/Treasurer
(518) 381-3607
TrustCo Bank Corporation... (NASDAQ:TRST)
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