TrustCo Bank Corp NY
(TrustCo, NASDAQ: TRST) ·
TrustCo Bank Corp NY today announced second quarter 2020 net income
of $11.3 million or $0.117 diluted earnings per share, and $24.6
million or $0.254 diluted earnings per share for the six months
ended June 30, 2020.
Summary
Robert J. McCormick, Chairman, President and
Chief Executive Officer noted, “As we continue to navigate COVID-19
and its effects on our families and neighbors, I’d like to reaffirm
Trustco Bank’s commitment to serving our communities through
careful financial management and high-quality service. This
enduring mission guides us as we respond to this situation by
providing you with the information, support, and advice you need to
manage your finances in this market and plan for your future. We
continue to remain thankful to those on the front lines from
medical centers to food banks that are providing the essential
services for those affected physically, emotionally, and
financially by COVID-19.”
TrustCo’s designated Coronavirus (“COVID-19”)
Fund, donating time and financial support to front line
organizations across the communities, and the COVID-19 Financial
Relief Program, providing support to our borrowers experiencing
economic hardships by offering loan deferrals, continues to be an
asset for our customers experiencing financial challenges during
this time.
TrustCo is taking every precaution possible to
keep our employees and customers safe during this time. The
bank continues to implement important policies, including
minimizing contact between employees and customers by requiring
face masks, installing clear barriers, and separating banking
departments from one another. As recommended by the CDC, cleaning
procedures continue to be augmented and protective sanitation items
are always available.
We also continue to closely monitor the impact
of the pandemic on our business and results of operations.
As of June 30, 2020, we had 668 residential loans in
deferral totaling $145 million, and 90 commercial loans in deferral
totaling $45 million. This represents 4.5% of total
outstanding loans. We are encouraged to see that a number of
residential and commercial loans had already re-started making
regular loan payments prior to the end of the quarter.
Additionally, the bank has funded 663 Paycheck Protection Program
(“PPP”) loans totaling $46 million.
The second quarter of 2020 saw continued loan
and deposit growth. Our focus on traditional lending criteria and
conservative balance sheet management has produced consistent
earnings while maintaining strong liquidity and growing capital.
This approach allowed us to continue to expand our business and
take advantage of changes in market and competitive
conditions. As mentioned last quarter, the pandemic has
created an uncertain future, and we believe we continue to be
well-positioned to help our customers through this economic
disruption and turmoil. We also continue to hire across our
locations for all levels of staff. As we enter the second
half of 2020 and beyond, management views the Bank as
well-positioned to deploy its existing liquidity into our
residential loan portfolio and we will continue to closely monitor
how the current market conditions change.
TrustCo saw average loans grow 7.0% in the
second quarter of 2020 compared to the second quarter of
2019. Year over year, loan portfolio expansion was funded by
a combination of utilizing a portion of our strong cash balances,
cash flow from investments, and the growth in funding from
customer deposits. Total average deposits are up $276.2
million or 6.2% in the second quarter 2020 compared to the prior
year.
Details
Average loans were up $270.5 million or 7.0% in
the second quarter 2020 over the same period in 2019. Average
residential loans, our primary lending focus, were up $257.2
million or 7.6% in the second quarter 2020, over the same period in
2019. Average deposits are up $276.2 million or 6.2% for the
second quarter 2020 over the same period a year earlier. The
increase in deposits was the result of a $321.2 million or 10.7%
increase total average core deposit accounts, which consist of
interest bearing and non-interest bearing checking, savings and
money market deposits, for the second quarter 2020 compared to the
second quarter 2019. Within core, checking balances were up
$203.5 million or 15.7% (including interest bearing checking and
non-interest bearing balances). Average time deposits
decreased $45.0 million or 3.1% for the second quarter 2020
compared to the second quarter 2019.
The cost of interest bearing liabilities
decreased to 0.64% in the second quarter 2020 from 0.91% in the
second quarter 2019. A significant portion of our CD
portfolio repriced during the last half of 2019 and the first half
of 2020, which resulted in lower rates due to market conditions.
The net interest margin for the second quarter 2020 was 2.81%, down
30 basis points from 3.11% in the second quarter of 2019 primarily
due to federal interest rate cuts over the same period resulting in
less interest earned on our short-term funds and variable rate
loans. Additionally, because we offered competitive shorter
term rates on our time deposits in the past, we expect cost of
interest bearing liabilities to continue to decrease as these
reprice at lower rates.
The Bank continued to demonstrate its ability to
grow shareholders’ equity as average equity was up $44.1 million or
8.7% in the second quarter of 2020 compared to the same period in
2019. Return on average assets and return on average equity
for the second quarter 2020 were .82% and 8.21%, respectively,
compared to 1.14% and 11.60% for the second quarter 2019.
Improving efficiencies to reduce costs continues to remain a key
area of focus. Total operating expenses decreased by $970
thousand or 3.9% in the second quarter 2020 as compared to the
second quarter 2019, driven by decreases in almost all expense
categories, with the exception of an increase in occupancy
expense.
Asset quality and loan loss reserve measures
continued to improve. Nonperforming loans (NPLs) were $21.9
million at June 30, 2020, compared to $22.1 million at June 30,
2019. NPLs were 0.52% of total loans at June 30, 2020,
compared to 0.57% at June 30, 2019. The coverage ratio, or
allowance for loan losses to NPLs, was 219.5% at June 30, 2020,
compared to 200.4% at June 30, 2019. Nonperforming assets
(NPAs) were $22.8 million at June 30, 2020 compared to $24.8
million at June 30, 2019. The ratio of allowance for loan
losses to total loans was 1.15% as of June 30, 2020, compared to
1.14% at June 30, 2019. The allowance for loan losses was
$48.1 million at June 30, 2020 compared to $44.4 million at June
30, 2019. The provision for loan losses increased to $2.0
million for the second quarter 2020 compared to a credit of $341
thousand in the same period in the prior year, primarily driven by
the uncertainty in the current economic environment resulting from
COVID-19. Additionally, in the second quarter of 2019 there
was a credit to the provision of loan losses of $541 thousand
related to the sale of our credit card portfolio. The Bank
did not adopt “FASB Accounting Standards Update 2016-13, Financial
Instruments – Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments” (“CECL”) as of January 1, 2020 as
allowed by the Coronavirus Aid, Relief, and Economic Security Act
(“CARES Act”). The Bank will adopt CECL as required by the
CARES Act at the earlier of the termination of the National
Emergency concerning COVID-19 or December 31, 2020. Net
chargeoffs for the second quarter 2020 were $11 thousand versus net
recoveries in the second quarter 2019 of $35 thousand. The
annualized net chargeoffs ratio was 0.00% for the second quarter
2020 and 2019.
At June 30, 2020 the tangible equity to tangible
asset ratio was 9.74%, compared to 9.85% at June 30, 2019.
Book value per share at June 30, 2020 was $5.73, up 7.7%
compared to $5.32 a year earlier.
TrustCo Bank Corp NY is a $5.7 billion savings
and loan holding company and through its subsidiary, Trustco Bank,
operated 148 offices in New York, New Jersey, Vermont,
Massachusetts, and Florida at June 30, 2020.
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 2020
results will be held at 9:00 a.m. Eastern Time on July 22,
2020. 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 10146338. The call
will also be audio webcast at:
https://services.choruscall.com/links/trst200722.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 2020, including our expectations regarding the
effects of COVID-19 on our financial results and our ability to
assist our customers in addressing the effects of COVID-19, our
expectations for the repricing of our CD portfolio and the
stabilizing of our net interest margin, 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, and many of the risks and uncertainties are heightened
by or may, in the future, be heightened by the effects of the
COVID-19 pandemic. 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: the effect of the COVID-19
pandemic on our business, financial condition, liquidity and
results of operations; the impact of the actions taken by
governmental authorities to contain COVID-19 or address the impact
of COVID-19 on the economy, and the effect of all of such items on
our operations, liquidity and capital position, and on the
financial condition of our borrowers and other customers; 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 make
accurate assumptions and judgments regarding the credit risks
associated with lending and investing activities; 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;
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 us and Trustco
Bank and the continued receipt of approvals from our primary
federal banking regulators under regulatory rules 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; adverse
conditions in the securities markets that lead to impairment in the
value of securities in our investment portfolio; unanticipated
effects from the Tax Cut and Jobs Act that may limit its benefits
or adversely impact our business; 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; the effect of changes in
financial services laws and regulations and the impact of other
governmental initiatives affecting the financial services industry;
changes in management personnel; real estate and collateral values;
changes in accounting policies and practices, as may be adopted by
the bank regulatory agencies, the FASB or PCAOB; disruptions,
security breaches, or other adverse events affecting the
third-party vendors who perform several of our critical processing
functions; technological changes and electronic, cyber and physical
security breaches; 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 |
|
GLENVILLE,
NY |
|
|
|
FINANCIAL
HIGHLIGHTS |
|
|
|
(dollars
in thousands, except per share data) |
|
(Unaudited) |
|
|
|
Three months ended |
|
|
|
6/30/2020 |
|
3/31/2020 |
|
6/30/2019 |
|
|
Summary of operations |
|
|
|
|
|
|
|
Net interest income (TE) |
$ |
37,681 |
|
38,554 |
|
39,192 |
|
|
Provision (Credit) for loan losses |
|
2,000 |
|
2,000 |
|
(341 |
) |
|
Net gain on securities transactions |
|
- |
|
1,155 |
|
- |
|
|
Noninterest income, excluding net gain on securities
transactions |
|
3,426 |
|
4,179 |
|
4,914 |
|
|
Noninterest expense |
|
23,932 |
|
24,268 |
|
24,902 |
|
|
Net income |
|
11,254 |
|
13,313 |
|
14,667 |
|
|
|
|
|
|
|
|
|
|
Per common share |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
- Basic |
$ |
0.117 |
|
0.138 |
|
0.152 |
|
|
- Diluted |
|
0.117 |
|
0.138 |
|
0.151 |
|
|
Cash dividends |
|
0.068 |
|
0.068 |
|
0.068 |
|
|
Book value at period end |
|
5.73 |
|
5.68 |
|
5.32 |
|
|
Market price at period end |
|
6.33 |
|
5.41 |
|
7.92 |
|
|
|
|
|
|
|
|
|
|
At period end |
|
|
|
|
|
|
|
Full time equivalent employees |
|
806 |
|
813 |
|
858 |
|
|
Full service banking offices |
|
148 |
|
148 |
|
148 |
|
|
|
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
|
Return on average assets |
|
0.82 |
% |
1.03 |
|
1.14 |
|
|
Return on average equity |
|
8.21 |
|
9.87 |
|
11.60 |
|
|
Efficiency (1) |
|
58.30 |
|
56.34 |
|
55.98 |
|
|
Net interest spread (TE) |
|
2.69 |
|
2.91 |
|
2.95 |
|
|
Net interest margin (TE) |
|
2.81 |
|
3.05 |
|
3.11 |
|
|
Dividend payout ratio |
|
58.37 |
|
49.41 |
|
44.94 |
|
|
|
|
|
|
|
|
|
|
Capital ratios at period
end |
|
|
|
|
|
|
|
Consolidated tangible equity to tangible assets (2) |
|
9.74 |
% |
10.42 |
|
9.85 |
|
|
Consolidated equity to assets |
|
9.75 |
% |
10.43 |
|
9.86 |
|
|
|
|
|
|
|
|
|
|
Asset quality analysis at
period end |
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.52 |
|
0.51 |
|
0.57 |
|
|
Nonperforming assets to total assets |
|
0.40 |
|
0.42 |
|
0.47 |
|
|
Allowance for loan losses to total loans |
|
1.15 |
|
1.13 |
|
1.14 |
|
|
Coverage ratio (3) |
|
2.2x |
|
2.2x |
|
2.0x |
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
measure; calculated as noninterest expense (excluding ORE
income/expense) divided by taxable |
equivalent net
interest income plus noninterest income. |
(2) Non-GAAP
measure; calculated as total equity less $553 of intangible assets
divided by total assets less |
$553 of intangible
assets. |
(3)
Calculated as allowance for loan losses divided by total
nonperforming loans. |
|
TE = Taxable
equivalent |
FINANCIAL
HIGHLIGHTS, Continued |
|
(dollars
in thousands, except per share data) |
(Unaudited) |
|
|
Six months ended |
|
|
06/30/20 |
|
06/30/19 |
|
Summary of operations |
|
|
|
|
Net interest income (TE) |
$ |
76,235 |
|
78,925 |
|
Provision (Credit) for loan losses |
|
4,000 |
|
(41 |
) |
Net gain on securities transactions |
|
1,155 |
|
- |
|
Noninterest income, excluding net gain on securities
transactions |
|
7,605 |
|
9,551 |
|
Noninterest expense |
|
48,200 |
|
49,769 |
|
Net income |
|
24,567 |
|
29,225 |
|
|
|
|
|
|
Per common share |
|
|
|
|
Net income per share: |
|
|
|
|
- Basic |
$ |
0.254 |
|
0.302 |
|
- Diluted |
|
0.254 |
|
0.302 |
|
Cash dividends |
|
0.136 |
|
0.136 |
|
Tangible Book value at period end |
|
5.73 |
|
5.32 |
|
Market price at period end |
|
6.33 |
|
7.92 |
|
|
|
|
|
|
Performance ratios |
|
|
|
|
Return on average assets |
|
0.92 |
|
1.15 |
|
Return on average equity |
|
9.04 |
|
11.76 |
|
Efficiency (1) |
|
57.30 |
|
56.04 |
|
Net interest spread (TE) |
|
2.80 |
|
3.03 |
|
Net interest margin (TE) |
|
2.93 |
|
3.17 |
|
Dividend payout ratio |
|
53.52 |
|
45.08 |
|
|
|
|
|
|
(1)
Calculated as noninterest expense (excluding ORE income/expense)
divided by taxable equivalent net interest income |
plus noninterest
income (excluding net securities transactions and gain on sale of
building and nonperforming loans). |
|
|
|
|
|
TE = Taxable
equivalent. |
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
6/30/2020 |
|
|
3/31/2020 |
|
12/31/2019 |
|
|
9/30/2019 |
|
6/30/2019 |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
41,665 |
|
|
42,063 |
|
42,002 |
|
|
41,923 |
|
41,432 |
|
Interest and dividends on securities available for sale: |
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
|
106 |
|
|
421 |
|
609 |
|
|
996 |
|
821 |
|
State and political subdivisions |
|
2 |
|
|
1 |
|
2 |
|
|
2 |
|
3 |
|
Mortgage-backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
1,527 |
|
|
2,113 |
|
2,334 |
|
|
2,178 |
|
2,152 |
|
Corporate bonds |
|
488 |
|
|
238 |
|
295 |
|
|
321 |
|
272 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
participation securities |
|
229 |
|
|
245 |
|
253 |
|
|
282 |
|
289 |
|
Other securities |
|
5 |
|
|
6 |
|
6 |
|
|
6 |
|
5 |
|
Total interest and dividends on securities available for sale |
|
2,357 |
|
|
3,024 |
|
3,499 |
|
|
3,785 |
|
3,542 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
162 |
|
|
175 |
|
184 |
|
|
187 |
|
209 |
|
Total interest on held to maturity securities |
|
162 |
|
|
175 |
|
184 |
|
|
187 |
|
209 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
192 |
|
|
82 |
|
203 |
|
|
81 |
|
199 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on federal funds sold
and other short-term investments |
|
193 |
|
|
1,267 |
|
1,635 |
|
|
2,552 |
|
3,282 |
|
Total interest income |
|
44,569 |
|
|
46,611 |
|
47,523 |
|
|
48,528 |
|
48,664 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Interest on deposits: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
|
26 |
|
|
16 |
|
21 |
|
|
52 |
|
94 |
|
Savings |
|
166 |
|
|
233 |
|
271 |
|
|
323 |
|
367 |
|
Money market deposit accounts |
|
862 |
|
|
1,096 |
|
1,175 |
|
|
1,177 |
|
1,119 |
|
Time deposits |
|
5,599 |
|
|
6,391 |
|
7,468 |
|
|
7,974 |
|
7,512 |
|
Interest on short-term borrowings |
|
235 |
|
|
322 |
|
347 |
|
|
359 |
|
381 |
|
Total interest expense |
|
6,888 |
|
|
8,058 |
|
9,282 |
|
|
9,885 |
|
9,473 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
37,681 |
|
|
38,553 |
|
38,241 |
|
|
38,643 |
|
39,191 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Provision (Credit) for loan losses |
|
2,000 |
|
|
2,000 |
|
200 |
|
|
- |
|
(341 |
) |
Net interest income after provision for loan losses |
|
35,681 |
|
|
36,553 |
|
38,041 |
|
|
38,643 |
|
39,532 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Trustco Financial Services income |
|
1,368 |
|
|
1,600 |
|
1,454 |
|
|
1,517 |
|
1,683 |
|
Fees for services to customers |
|
1,807 |
|
|
2,315 |
|
2,377 |
|
|
2,602 |
|
2,611 |
|
Net gain on securities transactions |
|
- |
|
|
1,155 |
|
- |
|
|
- |
|
- |
|
Other |
|
251 |
|
|
264 |
|
284 |
|
|
806 |
|
620 |
|
Total noninterest income |
|
3,426 |
|
|
5,334 |
|
4,115 |
|
|
4,925 |
|
4,914 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
11,648 |
|
|
11,373 |
|
11,743 |
|
|
11,725 |
|
11,711 |
|
Net occupancy expense |
|
4,385 |
|
|
4,306 |
|
4,399 |
|
|
4,094 |
|
4,006 |
|
Equipment expense |
|
1,606 |
|
|
1,802 |
|
1,768 |
|
|
1,689 |
|
1,709 |
|
Professional services |
|
1,182 |
|
|
1,481 |
|
1,449 |
|
|
1,507 |
|
1,568 |
|
Outsourced services |
|
1,875 |
|
|
2,075 |
|
1,925 |
|
|
1,875 |
|
1,875 |
|
Advertising expense |
|
601 |
|
|
488 |
|
464 |
|
|
494 |
|
778 |
|
FDIC and other insurance |
|
609 |
|
|
294 |
|
259 |
|
|
282 |
|
598 |
|
Other real estate (income) expense, net |
|
(32 |
) |
|
194 |
|
(385 |
) |
|
33 |
|
210 |
|
Other |
|
2,058 |
|
|
2,255 |
|
2,269 |
|
|
2,371 |
|
2,447 |
|
Total noninterest expenses |
|
23,932 |
|
|
24,268 |
|
23,891 |
|
|
24,070 |
|
24,902 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
15,175 |
|
|
17,619 |
|
18,265 |
|
|
19,498 |
|
19,544 |
|
Income taxes |
|
3,921 |
|
|
4,306 |
|
4,358 |
|
|
4,790 |
|
4,877 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11,254 |
|
|
13,313 |
|
13,907 |
|
|
14,708 |
|
14,667 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
- Basic |
$ |
0.117 |
|
|
0.138 |
|
0.143 |
|
|
0.152 |
|
0.152 |
|
|
|
|
|
|
|
|
|
|
|
|
- Diluted |
|
0.117 |
|
|
0.138 |
|
0.143 |
|
|
0.152 |
|
0.151 |
|
|
|
|
|
|
|
|
|
|
|
|
Average basic shares (in
thousands) |
|
96,433 |
|
|
96,727 |
|
96,919 |
|
|
96,907 |
|
96,822 |
|
Average diluted shares (in
thousands) |
|
96,437 |
|
|
96,750 |
|
97,015 |
|
|
96,977 |
|
96,891 |
|
|
|
|
|
|
|
|
|
|
|
|
Note: Taxable equivalent
net interest income |
$ |
37,681 |
|
|
38,554 |
|
38,243 |
|
|
38,644 |
|
39,192 |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME, Continued |
|
(dollars
in thousands, except per share data) |
(Unaudited) |
|
|
Six months ended |
|
|
06/30/20 |
|
06/30/19 |
|
Interest and dividend
income: |
|
|
|
|
Interest and fees on loans |
$ |
83,728 |
|
82,685 |
|
Interest and dividends on securities available for sale: |
|
|
|
|
U. S. government sponsored enterprises |
|
527 |
|
1,604 |
|
State and political subdivisions |
|
3 |
|
4 |
|
Mortgage-backed securities and collateralized mortgage |
|
|
|
|
obligations - residential |
|
3,640 |
|
3,707 |
|
Corporate bonds |
|
726 |
|
480 |
|
Small Business Administration - guaranteed |
|
|
|
|
participation securities |
|
474 |
|
586 |
|
Other securities |
|
11 |
|
10 |
|
Total interest and dividends on securities available for sale |
|
5,381 |
|
6,391 |
|
|
|
|
|
|
Interest on held to maturity
securities: |
|
|
|
|
Mortgage-backed securities-residential |
|
337 |
|
426 |
|
Total interest on held to maturity securities |
|
337 |
|
426 |
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
274 |
|
284 |
|
|
|
|
|
|
Interest on federal funds sold
and other short-term investments |
|
1,460 |
|
6,291 |
|
Total interest income |
|
91,180 |
|
96,077 |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
Interest on deposits: |
|
|
|
|
Interest-bearing checking |
|
42 |
|
215 |
|
Savings |
|
399 |
|
744 |
|
Money market deposit accounts |
|
1,958 |
|
1,945 |
|
Time deposits |
|
11,990 |
|
13,488 |
|
Interest on short-term borrowings |
|
557 |
|
762 |
|
Total interest expense |
|
14,946 |
|
17,154 |
|
|
|
|
|
|
Net interest income |
|
76,234 |
|
78,923 |
|
|
|
|
|
|
Less: (Credit) Provision for loan losses |
|
4,000 |
|
(41 |
) |
Net interest income after provision for loan losses |
|
72,234 |
|
78,964 |
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
Trustco Financial Services income |
|
2,968 |
|
3,416 |
|
Fees for services to customers |
|
4,122 |
|
5,131 |
|
Net gain on securities transactions |
|
1,155 |
|
- |
|
Other |
|
515 |
|
1,004 |
|
Total noninterest income |
|
8,760 |
|
9,551 |
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
Salaries and employee benefits |
|
23,021 |
|
23,162 |
|
Net occupancy expense |
|
8,691 |
|
8,173 |
|
Equipment expense |
|
3,408 |
|
3,611 |
|
Professional services |
|
2,663 |
|
3,218 |
|
Outsourced services |
|
3,950 |
|
3,800 |
|
Advertising expense |
|
1,089 |
|
1,563 |
|
FDIC and other insurance |
|
903 |
|
1,246 |
|
Other real estate expense, net |
|
162 |
|
186 |
|
Other |
|
4,313 |
|
4,810 |
|
Total noninterest expenses |
|
48,200 |
|
49,769 |
|
|
|
|
|
|
Income before taxes |
|
32,794 |
|
38,746 |
|
Income taxes |
|
8,227 |
|
9,521 |
|
|
|
|
|
|
Net income |
$ |
24,567 |
|
29,225 |
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
- Basic |
$ |
0.254 |
|
0.302 |
|
|
|
|
|
|
- Diluted |
|
0.254 |
|
0.302 |
|
|
|
|
|
|
Average basic shares (in
thousands) |
|
96,580 |
|
96,784 |
|
Average diluted shares (in
thousands) |
|
96,593 |
|
96,857 |
|
|
|
|
|
|
Note: Taxable equivalent
net interest income |
$ |
76,235 |
|
78,925 |
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
|
(dollars
in thousands) |
(Unaudited) |
|
|
6/30/2020 |
|
|
3/31/2020 |
|
|
12/31/2019 |
|
|
9/30/2019 |
|
|
6/30/2019 |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
44,726 |
|
|
43,362 |
|
|
48,198 |
|
|
49,526 |
|
|
42,471 |
|
Federal funds sold and other
short term investments |
|
908,110 |
|
|
492,691 |
|
|
408,648 |
|
|
401,151 |
|
|
517,684 |
|
Total cash and cash equivalents |
|
952,836 |
|
|
536,053 |
|
|
456,846 |
|
|
450,677 |
|
|
560,155 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for
sale: |
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
|
- |
|
|
54,970 |
|
|
104,512 |
|
|
164,490 |
|
|
184,448 |
|
States and political subdivisions |
|
111 |
|
|
112 |
|
|
162 |
|
|
169 |
|
|
170 |
|
Mortgage-backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
331,469 |
|
|
352,067 |
|
|
389,517 |
|
|
406,166 |
|
|
354,679 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
participation securities |
|
45,998 |
|
|
46,768 |
|
|
48,511 |
|
|
50,970 |
|
|
53,091 |
|
Corporate bonds |
|
54,439 |
|
|
48,564 |
|
|
30,436 |
|
|
40,281 |
|
|
40,467 |
|
Other securities |
|
685 |
|
|
685 |
|
|
685 |
|
|
683 |
|
|
685 |
|
Total securities available for sale |
|
432,702 |
|
|
503,166 |
|
|
573,823 |
|
|
662,759 |
|
|
633,540 |
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
obligations-residential |
|
16,633 |
|
|
17,720 |
|
|
18,618 |
|
|
19,705 |
|
|
20,667 |
|
Total held to maturity securities |
|
16,633 |
|
|
17,720 |
|
|
18,618 |
|
|
19,705 |
|
|
20,667 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
5,506 |
|
|
9,183 |
|
|
9,183 |
|
|
9,183 |
|
|
9,183 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
231,212 |
|
|
195,805 |
|
|
199,499 |
|
|
192,443 |
|
|
190,507 |
|
Residential mortgage loans |
|
3,681,898 |
|
|
3,627,121 |
|
|
3,583,774 |
|
|
3,508,647 |
|
|
3,428,829 |
|
Home equity line of credit |
|
254,445 |
|
|
265,753 |
|
|
267,922 |
|
|
273,526 |
|
|
277,559 |
|
Installment loans |
|
10,006 |
|
|
10,713 |
|
|
11,001 |
|
|
10,703 |
|
|
9,514 |
|
Loans, net of deferred net
costs |
|
4,177,561 |
|
|
4,099,392 |
|
|
4,062,196 |
|
|
3,985,319 |
|
|
3,906,409 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Allowance for loan
losses |
|
48,144 |
|
|
46,155 |
|
|
44,317 |
|
|
44,329 |
|
|
44,365 |
|
Net loans |
|
4,129,417 |
|
|
4,053,237 |
|
|
4,017,879 |
|
|
3,940,990 |
|
|
3,862,044 |
|
|
|
|
|
|
|
|
|
|
|
|
Bank premises and equipment,
net |
|
34,042 |
|
|
34,428 |
|
|
34,622 |
|
|
34,168 |
|
|
34,058 |
|
Operating lease right-of-use
assets |
|
48,712 |
|
|
49,955 |
|
|
51,475 |
|
|
49,618 |
|
|
51,097 |
|
Other assets |
|
57,155 |
|
|
52,905 |
|
|
58,876 |
|
|
55,369 |
|
|
56,926 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,677,003 |
|
|
5,256,647 |
|
|
5,221,322 |
|
|
5,222,469 |
|
|
5,227,670 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
612,960 |
|
|
480,255 |
|
|
463,858 |
|
|
453,439 |
|
|
432,780 |
|
Interest-bearing checking |
|
1,001,592 |
|
|
895,254 |
|
|
875,672 |
|
|
869,101 |
|
|
888,433 |
|
Savings accounts |
|
1,191,682 |
|
|
1,122,116 |
|
|
1,113,146 |
|
|
1,110,947 |
|
|
1,132,308 |
|
Money market deposit accounts |
|
666,304 |
|
|
617,198 |
|
|
599,163 |
|
|
570,457 |
|
|
562,318 |
|
Time deposits |
|
1,392,769 |
|
|
1,367,005 |
|
|
1,398,177 |
|
|
1,457,223 |
|
|
1,446,428 |
|
Total deposits |
|
4,865,307 |
|
|
4,481,828 |
|
|
4,450,016 |
|
|
4,461,167 |
|
|
4,462,267 |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
177,278 |
|
|
148,090 |
|
|
148,666 |
|
|
151,095 |
|
|
166,746 |
|
Operating lease
liabilities |
|
53,710 |
|
|
54,998 |
|
|
56,553 |
|
|
54,731 |
|
|
56,237 |
|
Accrued expenses and other
liabilities |
|
27,287 |
|
|
23,546 |
|
|
27,830 |
|
|
29,313 |
|
|
26,790 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
5,123,582 |
|
|
4,708,462 |
|
|
4,683,065 |
|
|
4,696,306 |
|
|
4,712,040 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
|
|
|
Capital stock |
|
100,205 |
|
|
100,205 |
|
|
100,205 |
|
|
100,200 |
|
|
100,180 |
|
Surplus |
|
176,437 |
|
|
176,431 |
|
|
176,427 |
|
|
176,395 |
|
|
176,396 |
|
Undivided profits |
|
299,239 |
|
|
294,553 |
|
|
288,067 |
|
|
280,542 |
|
|
272,433 |
|
Accumulated other
comprehensive loss, net of tax |
|
11,936 |
|
|
11,392 |
|
|
4,461 |
|
|
(71 |
) |
|
(1,774 |
) |
Treasury stock at cost |
|
(34,396 |
) |
|
(34,396 |
) |
|
(30,903 |
) |
|
(30,903 |
) |
|
(31,605 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
553,421 |
|
|
548,185 |
|
|
538,257 |
|
|
526,163 |
|
|
515,630 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
5,677,003 |
|
|
5,256,647 |
|
|
5,221,322 |
|
|
5,222,469 |
|
|
5,227,670 |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares (in
thousands) |
|
96,433 |
|
|
96,433 |
|
|
96,922 |
|
|
96,917 |
|
|
96,822 |
|
NONPERFORMING ASSETS |
|
|
|
|
|
|
|
(dollars
in thousands) |
(Unaudited) |
|
|
6/30/2020 |
|
3/31/2020 |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
Nonperforming
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
571 |
|
630 |
|
816 |
|
888 |
|
905 |
|
Real estate mortgage - 1 to 4 family |
|
20,215 |
|
18,570 |
|
18,407 |
|
18,275 |
|
19,633 |
|
Installment |
|
6 |
|
24 |
|
3 |
|
13 |
|
1 |
|
Total non-accrual loans |
|
20,792 |
|
19,224 |
|
19,226 |
|
19,176 |
|
20,539 |
|
Other nonperforming real estate mortgages - 1 to 4 family |
|
26 |
|
27 |
|
29 |
|
30 |
|
31 |
|
Total nonperforming loans |
|
20,818 |
|
19,251 |
|
19,255 |
|
19,206 |
|
20,570 |
|
Other real estate owned |
|
830 |
|
1,284 |
|
1,579 |
|
2,409 |
|
2,625 |
|
Total nonperforming assets |
$ |
21,648 |
|
20,535 |
|
20,834 |
|
21,615 |
|
23,195 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1 to 4 family |
|
1,111 |
|
1,492 |
|
1,614 |
|
1,809 |
|
1,564 |
|
Installment |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total non-accrual loans |
|
1,111 |
|
1,492 |
|
1,614 |
|
1,809 |
|
1,564 |
|
Other nonperforming real estate mortgages - 1 to 4 family |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming loans |
|
1,111 |
|
1,492 |
|
1,614 |
|
1,809 |
|
1,564 |
|
Other real estate owned |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming assets |
$ |
1,111 |
|
1,492 |
|
1,614 |
|
1,809 |
|
1,564 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
571 |
|
630 |
|
816 |
|
888 |
|
905 |
|
Real estate mortgage - 1 to 4 family |
|
21,326 |
|
20,062 |
|
20,021 |
|
20,084 |
|
21,197 |
|
Installment |
|
6 |
|
24 |
|
3 |
|
13 |
|
1 |
|
Total non-accrual loans |
|
21,903 |
|
20,716 |
|
20,840 |
|
20,985 |
|
22,103 |
|
Other nonperforming real estate mortgages - 1 to 4 family |
|
26 |
|
27 |
|
29 |
|
30 |
|
31 |
|
Total nonperforming loans |
|
21,929 |
|
20,743 |
|
20,869 |
|
21,015 |
|
22,134 |
|
Other real estate owned |
|
830 |
|
1,284 |
|
1,579 |
|
2,409 |
|
2,625 |
|
Total nonperforming assets |
$ |
22,759 |
|
22,027 |
|
22,448 |
|
23,424 |
|
24,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net
(Recoveries) Chargeoffs |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Commercial |
$ |
(6 |
) |
1 |
|
(1 |
) |
(28 |
) |
(1 |
) |
Real estate mortgage - 1 to 4 family |
|
(27 |
) |
140 |
|
146 |
|
39 |
|
(54 |
) |
Installment |
|
44 |
|
4 |
|
67 |
|
9 |
|
45 |
|
Total net (recoveries) chargeoffs |
$ |
11 |
|
145 |
|
212 |
|
20 |
|
(10 |
) |
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1 to 4 family |
|
- |
|
(2 |
) |
(1 |
) |
- |
|
(25 |
) |
Installment |
|
- |
|
19 |
|
1 |
|
16 |
|
- |
|
Total net (recoveries) chargeoffs |
$ |
- |
|
17 |
|
- |
|
16 |
|
(25 |
) |
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Commercial |
$ |
(6 |
) |
1 |
|
(1 |
) |
(28 |
) |
(1 |
) |
Real estate mortgage - 1 to 4 family |
|
(27 |
) |
138 |
|
145 |
|
39 |
|
(79 |
) |
Installment |
|
44 |
|
23 |
|
68 |
|
25 |
|
45 |
|
Total net (recoveries) chargeoffs |
$ |
11 |
|
162 |
|
212 |
|
36 |
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans
(1) |
$ |
21,929 |
|
20,743 |
|
20,869 |
|
21,015 |
|
22,134 |
|
Total nonperforming assets
(1) |
|
22,759 |
|
22,027 |
|
22,448 |
|
23,424 |
|
24,759 |
|
Total net (recoveries)
chargeoffs (2) |
|
11 |
|
162 |
|
212 |
|
36 |
|
(35 |
) |
|
|
|
|
|
|
|
Allowance for loan losses
(1) |
|
48,144 |
|
46,155 |
|
44,317 |
|
44,329 |
|
44,365 |
|
|
|
|
|
|
|
|
Nonperforming loans to total
loans |
|
0.52% |
|
0.51% |
|
0.51% |
|
0.53% |
|
0.57% |
|
Nonperforming assets to total
assets |
|
0.40% |
|
0.42% |
|
0.43% |
|
0.45% |
|
0.47% |
|
Allowance for loan losses to
total loans |
|
1.15% |
|
1.13% |
|
1.09% |
|
1.11% |
|
1.14% |
|
Coverage ratio (1) |
|
219.5% |
|
222.5% |
|
212.4% |
|
210.9% |
|
200.4% |
|
Annualized net chargeoffs to
average loans (2) |
|
0.00% |
|
0.02% |
|
0.02% |
|
0.00% |
|
0.00% |
|
Allowance for loan losses to
annualized net chargeoffs (2) |
|
1094.2x |
|
71.2x |
|
52.3x |
|
307.8x |
|
-316.9x |
|
|
* 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) |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Three months ended |
|
|
Three months ended |
|
|
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for
sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
23,291 |
|
|
106 |
1.83 |
% |
$ |
160,197 |
|
|
821 |
|
2.05 |
% |
Mortgage backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
333,122 |
|
|
1,527 |
1.83 |
|
|
342,678 |
|
|
2,152 |
|
2.51 |
|
State and political subdivisions |
|
110 |
|
|
2 |
7.90 |
|
|
168 |
|
|
4 |
|
9.52 |
|
Corporate bonds |
|
51,494 |
|
|
488 |
3.79 |
|
|
33,793 |
|
|
272 |
|
3.22 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
|
|
participation securities |
|
45,260 |
|
|
229 |
2.03 |
|
|
54,254 |
|
|
289 |
|
2.13 |
|
Other |
|
685 |
|
|
5 |
2.92 |
|
|
686 |
|
|
5 |
|
2.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale |
|
453,962 |
|
|
2,357 |
2.08 |
|
|
591,776 |
|
|
3,543 |
|
2.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other
short-term Investments |
|
727,006 |
|
|
193 |
0.11 |
|
|
545,724 |
|
|
3,282 |
|
2.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
17,199 |
|
|
162 |
3.75 |
|
|
21,155 |
|
|
209 |
|
3.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity securities |
|
17,199 |
|
|
162 |
3.75 |
|
|
21,155 |
|
|
209 |
|
3.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
9,332 |
|
|
192 |
8.23 |
|
|
9,173 |
|
|
199 |
|
8.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
223,002 |
|
|
2,610 |
4.68 |
|
|
189,870 |
|
|
2,546 |
|
5.36 |
|
Residential mortgage
loans |
|
3,653,342 |
|
|
36,365 |
3.98 |
|
|
3,396,149 |
|
|
35,179 |
|
4.14 |
|
Home equity lines of
credit |
|
260,029 |
|
|
2,515 |
3.89 |
|
|
279,622 |
|
|
3,503 |
|
5.01 |
|
Installment loans |
|
10,044 |
|
|
175 |
7.02 |
|
|
10,310 |
|
|
204 |
|
7.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
4,146,417 |
|
|
41,665 |
4.02 |
|
|
3,875,951 |
|
|
41,432 |
|
4.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning assets |
|
5,353,916 |
|
|
44,569 |
3.33 |
|
|
5,043,779 |
|
|
48,665 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
(46,832 |
) |
|
|
|
|
|
(44,841 |
) |
|
|
|
|
Cash & non-interest
earning assets |
|
195,815 |
|
|
|
|
|
|
177,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,502,899 |
|
|
|
|
|
$ |
5,175,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
953,299 |
|
|
26 |
0.01 |
% |
$ |
879,732 |
|
|
94 |
|
0.04 |
% |
Money market accounts |
|
641,593 |
|
|
862 |
0.54 |
|
|
553,708 |
|
|
1,119 |
|
0.81 |
|
Savings |
|
1,167,844 |
|
|
166 |
0.06 |
|
|
1,138,107 |
|
|
367 |
|
0.13 |
|
Time deposits |
|
1,392,136 |
|
|
5,599 |
1.62 |
|
|
1,437,097 |
|
|
7,512 |
|
2.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,154,872 |
|
|
6,653 |
0.64 |
|
|
4,008,644 |
|
|
9,092 |
|
0.91 |
|
Short-term borrowings |
|
172,834 |
|
|
235 |
0.55 |
|
|
162,690 |
|
|
381 |
|
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,327,706 |
|
|
6,888 |
0.64 |
|
|
4,171,334 |
|
|
9,473 |
|
0.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
548,178 |
|
|
|
|
|
|
418,215 |
|
|
|
|
|
Other liabilities |
|
75,603 |
|
|
|
|
|
|
79,056 |
|
|
|
|
|
Shareholders' equity |
|
551,412 |
|
|
|
|
|
|
507,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
5,502,899 |
|
|
|
|
|
$ |
5,175,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, tax
equivalent |
|
|
|
37,681 |
|
|
|
|
|
39,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.69 |
% |
|
|
|
|
2.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (net
interest income to |
|
|
|
|
|
|
|
|
|
|
|
|
total interest earning assets) |
|
|
|
|
2.81 |
% |
|
|
|
|
3.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
|
|
- |
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
37,681 |
|
|
|
|
|
39,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS'
EQUITY - |
INTEREST
RATES AND INTEREST DIFFERENTIAL, Continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Six months ended |
|
|
Six months ended |
|
|
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for
sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
57,830 |
|
|
527 |
|
1.82 |
% |
$ |
157,244 |
|
|
1,604 |
|
2.04 |
% |
Mortgage backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
352,445 |
|
|
3,640 |
|
2.07 |
|
|
308,034 |
|
|
3,707 |
|
2.41 |
|
State and political subdivisions |
|
112 |
|
|
4 |
|
7.74 |
|
|
168 |
|
|
6 |
|
7.14 |
|
Corporate bonds |
|
39,913 |
|
|
726 |
|
3.64 |
|
|
30,347 |
|
|
480 |
|
3.16 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
|
|
participation securities |
|
46,339 |
|
|
474 |
|
2.05 |
|
|
55,648 |
|
|
586 |
|
2.11 |
|
Other |
|
685 |
|
|
11 |
|
3.21 |
|
|
685 |
|
|
10 |
|
2.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale |
|
497,324 |
|
|
5,382 |
|
2.16 |
|
|
552,126 |
|
|
6,393 |
|
2.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other
short-term Investments |
|
569,541 |
|
|
1,460 |
|
0.52 |
|
|
524,468 |
|
|
6,291 |
|
2.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
17,671 |
|
|
337 |
|
3.81 |
|
|
21,594 |
|
|
426 |
|
3.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity securities |
|
17,671 |
|
|
337 |
|
3.81 |
|
|
21,594 |
|
|
426 |
|
3.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
9,258 |
|
|
274 |
|
5.92 |
|
|
9,064 |
|
|
284 |
|
6.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
210,524 |
|
|
5,152 |
|
4.89 |
|
|
191,793 |
|
|
5,129 |
|
5.35 |
|
Residential mortgage
loans |
|
3,627,535 |
|
|
72,826 |
|
4.02 |
|
|
3,385,628 |
|
|
70,043 |
|
4.14 |
|
Home equity lines of
credit |
|
262,745 |
|
|
5,383 |
|
4.12 |
|
|
282,892 |
|
|
7,040 |
|
4.98 |
|
Installment loans |
|
10,380 |
|
|
367 |
|
7.11 |
|
|
11,099 |
|
|
473 |
|
8.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
4,111,184 |
|
|
83,728 |
|
4.08 |
|
|
3,871,412 |
|
|
82,685 |
|
4.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning assets |
|
5,204,978 |
|
|
91,181 |
|
3.51 |
|
|
4,978,664 |
|
|
96,079 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
(45,676 |
) |
|
|
|
|
|
(44,894 |
) |
|
|
|
|
Cash & non-interest
earning assets |
|
194,718 |
|
|
|
|
|
|
176,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,354,020 |
|
|
|
|
|
$ |
5,110,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
912,226 |
|
|
42 |
|
0.01 |
% |
$ |
880,101 |
|
|
215 |
|
0.05 |
% |
Money market accounts |
|
627,897 |
|
|
1,958 |
|
0.63 |
|
|
535,950 |
|
|
1,945 |
|
0.73 |
|
Savings |
|
1,142,201 |
|
|
399 |
|
0.07 |
|
|
1,149,064 |
|
|
744 |
|
0.13 |
|
Time deposits |
|
1,381,025 |
|
|
11,990 |
|
1.75 |
|
|
1,395,361 |
|
|
13,488 |
|
1.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,063,349 |
|
|
14,389 |
|
0.71 |
|
|
3,960,476 |
|
|
16,392 |
|
0.83 |
|
Short-term borrowings |
|
163,251 |
|
|
557 |
|
0.69 |
|
|
160,893 |
|
|
762 |
|
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,226,600 |
|
|
14,946 |
|
0.71 |
|
|
4,121,369 |
|
|
17,154 |
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
503,327 |
|
|
|
|
|
|
407,926 |
|
|
|
|
|
Other liabilities |
|
77,303 |
|
|
|
|
|
|
79,814 |
|
|
|
|
|
Shareholders' equity |
|
546,790 |
|
|
|
|
|
|
501,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
5,354,020 |
|
|
|
|
|
$ |
5,110,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, tax
equivalent |
|
|
|
76,235 |
|
|
|
|
|
|
78,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.80 |
% |
|
|
|
|
3.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (net
interest income to |
|
|
|
|
|
|
|
|
|
|
|
|
total interest earning assets) |
|
|
|
|
2.93 |
% |
|
|
|
|
3.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
|
|
(1 |
) |
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
76,234 |
|
|
|
|
|
|
78,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and other non-routine items 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) |
|
|
6/30/2020 |
|
3/31/2020 |
|
6/30/2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets |
|
|
|
|
|
|
|
|
Total Assets (GAAP) |
$ |
5,677,003 |
|
5,256,647 |
|
5,227,670 |
|
|
|
|
|
Less: Intangible assets |
|
553 |
|
553 |
|
553 |
|
|
|
|
|
Tangible assets (Non-GAAP) |
|
5,676,450 |
|
5,256,094 |
|
5,227,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity (GAAP) |
|
553,421 |
|
548,185 |
|
515,630 |
|
|
|
|
|
Less: Intangible assets |
|
553 |
|
553 |
|
553 |
|
|
|
|
|
Tangible equity (Non-GAAP) |
|
552,868 |
|
547,632 |
|
515,077 |
|
|
|
|
|
Tangible Equity to Tangible
Assets (Non-GAAP) |
|
9.74% |
|
10.42% |
|
9.85% |
|
|
|
|
|
Equity to Assets (GAAP) |
|
9.75% |
|
10.43% |
|
9.86% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
Efficiency Ratio |
|
6/30/2020 |
|
3/31/2020 |
|
6/30/2019 |
|
|
|
6/30/2020 |
|
6/30/2019 |
|
|
|
|
|
|
|
|
|
|
Net interest income (fully
taxable equivalent) (Non-GAAP) |
$ |
37,681 |
|
38,554 |
|
39,192 |
|
|
$ |
76,235 |
|
78,925 |
|
Non-interest income
(GAAP) |
|
3,426 |
|
5,334 |
|
4,914 |
|
|
|
8,760 |
|
9,551 |
|
Less: Net gain on securities |
|
- |
|
1,155 |
|
- |
|
|
|
1,155 |
|
- |
|
Revenue used for efficiency
ratio (Non-GAAP) |
|
41,107 |
|
42,733 |
|
44,106 |
|
|
|
83,840 |
|
88,476 |
|
|
|
|
|
|
|
|
|
|
Total noninterest expense
(GAAP) |
|
23,932 |
|
24,268 |
|
24,902 |
|
|
|
48,200 |
|
49,769 |
|
Less: Other real estate
expense (income), net |
|
(32 |
) |
194 |
|
210 |
|
|
|
162 |
|
186 |
|
Expense used for efficiency
ratio (Non-GAAP) |
|
23,964 |
|
24,074 |
|
24,692 |
|
|
|
48,038 |
|
49,583 |
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio |
|
58.30% |
|
56.34% |
|
55.98% |
|
|
|
57.30% |
|
56.04% |
|
Contact:Robert LeonardExecutive Vice President andChief Risk
Officer(518) 381-3693
TrustCo Bank Corporation... (NASDAQ:TRST)
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