TrustCo Bank Corp NY
(TrustCo, NASDAQ: TRST) today
announced full year 2020 net income of $52.5 million or $0.543
diluted earnings per share, and net income of $13.8 million or
$0.143 diluted earnings per share for the fourth quarter of 2020.
Average residential loan growth increased 5.9% or $209.1 million to
a record $3.8 billion for the fourth quarter 2020.
SummaryRobert J. McCormick,
Chairman, President and Chief Executive Officer noted, “As a bank
built upon Home Town values, we continue to prioritize
strengthening our communities and adapting our offerings to address
the changing needs of our customers during the COVID-19 pandemic.
TrustCo’s commitment to supporting its communities and front line
workers remains steadfast. In an effort to ensure families had a
safe place to celebrate the holidays, Trustco Bank launched the
“Home for the Holidays” program, donating $40,000 to local housing
agencies and community loan funds across New York, New Jersey and
Florida. This is just one example of ways we have prioritized
giving back. In addition, TrustCo partnered with local communities
to offer custom merchant loan programs to help small businesses
stay afloat during the pandemic. Lastly, TrustCo donated over 2,000
turkeys to food banks in New York and Florida to help ensure
families who experienced economic challenges had a warm meal for
Thanksgiving.”
We also continue to closely monitor the impact
of the pandemic on our business and results of operations. As of
December 31, 2020, we had 8 residential loans in deferral totaling
$2 million, and no installment or commercial loans in deferral.
This represents 0.04% of total outstanding loans. As of September
30, 2020, we had 24 residential and installment loans in deferral
totaling $5 million, and 6 commercial loans in deferral totaling $2
million. This represented 0.2% of total outstanding loans. As of
June 30, 2020, we had 668 residential and installment loans in
deferral totaling $145 million, and 84 commercial loans in deferral
totaling $45 million. This represented 4.5% of total outstanding
loans. We have been encouraged to see that most of our residential
and commercial borrowers who had payment deferral arrangements with
us have returned to making regular loan payments. Additionally, the
Bank had funded 663 Paycheck Protection Program (“PPP”) loans
totaling $46 million, as of December 31, 2020, 514 PPP loans
totaling $29 million remain outstanding.
The fourth 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 in prior quarters, 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 new year, 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.
Details
Average loans were up $214.9 million or 5.3% in
the fourth quarter 2020 over the same period in 2019. Average
residential loans, our primary lending focus, were up $209.1
million, or 5.9%, in the fourth quarter 2020 over the same period
in 2019. Average deposits were up $494.1 million or 11.1% for the
fourth quarter 2020 over the same period a year earlier. The
increase in deposits was the result of a $632.1 million or 21.0%
increase total average core deposit accounts, which consist of
interest bearing and non-interest bearing checking, savings and
money market deposits, offset by a decrease in average time
deposits of $138.0 million or 9.7%, for the fourth quarter 2020
over the same period in 2019. Within the core deposits, checking
balances were up $357.6 million or 27.1% (including interest
bearing and non-interest bearing checking balances), money market
balances were up $127.1 million or 21.8%, and savings balances were
up $147.4 million or 13.3%. We believe the increase in core
deposits continues to reflect the desire of customers to have
additional funds in the safety and security offered by TrustCo’s
long history of conservative banking. As we move forward, the
objective is to encourage customers to retain these additional
funds in the expanded product offerings of the Bank through
aggressive marketing and product differentiation.
The cost of interest bearing liabilities
decreased to 0.35% in the fourth quarter 2020 from 0.90% in the
fourth quarter 2019. A significant portion of our CD portfolio
(time deposits) repriced during 2020, which resulted in a decrease
in average rates to 0.95% in the fourth quarter of 2020 from 2.10%
in the fourth quarter of 2019, as a result of the ongoing market
conditions. The net interest margin for the fourth quarter 2020 was
2.79%, down 23 basis points from 3.02% in the fourth quarter of
2019. This was primarily due to the decrease in market rates over
the same period resulting in less interest earned on our short-term
funds, residential and variable rate loans.
The Bank continued to demonstrate its ability to
grow shareholders’ equity as average equity was up $33.5 million or
6.3% in the fourth quarter of 2020 compared to the same period in
2019. Return on average assets and return on average equity for the
fourth quarter 2020 were 0.95% and 9.75%, respectively, compared to
1.06% and 10.41% for the fourth quarter 2019. Improving
efficiencies to reduce costs continues to remain a key area of
focus.
Asset quality and loan loss reserve measures
have stayed consistent. Nonperforming loans (NPLs) were $21.1
million at December 31, 2020, compared to $20.9 million at December
31, 2019. NPLs were 0.50% of total loans at December 31, 2020,
compared to 0.51% at December 31, 2019. The coverage ratio, or
allowance for loan losses to NPLs, was 235.2% at December 31, 2020,
compared to 212.4% at December 31, 2019. Nonperforming assets
(NPAs) were $21.6 million at December 31, 2020, compared to $22.4
million at December 31, 2019. The ratio of allowance for loan
losses to total loans was 1.17% as of December 31, 2020, compared
to 1.09% at December 31, 2019. The allowance for loan losses was
$49.6 million at December 31, 2020, compared to $44.3 million at
December 31, 2019. The provision for loan losses increased to $600
thousand for the fourth quarter 2020 compared to $200 thousand in
the same period in the prior year, primarily driven by the
continued uncertainty in the current economic environment resulting
from COVID-19. The Company had previously elected to delay its
adoption of Accounting Standards Update 2016-13, “Financial
Instruments – Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments” (“CECL”), as provided by the
Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
until the date on which the National Emergency concerning COVID-19
was terminated or December 31, 2020, whichever occurred first.
The December 31, 2020 adoption date under the CARES Act was
extended to January 1, 2022 as a part of the COVID-19 Relief Bill,
which became law in December 2020, and therefore the Company now
intends to adopt CECL on January 1, 2022.
Net chargeoffs for the fourth quarter 2020 were
$128 thousand versus net chargeoffs in the fourth quarter 2019 of
$212 thousand. The annualized net chargeoffs ratio was 0.01% and
0.02% for the fourth quarter 2020 and 2019, respectively.
At December 31, 2020 the tangible equity to
tangible asset ratio was 9.62%, compared to 10.30% at December 31,
2019. Book value per share at December 31, 2020 was $5.89, up 6.1%
compared to $5.55 a year earlier.
TrustCo Bank Corp NY is a $5.9 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 December 31, 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 fourth quarter 2020
results will be held at 9:00 a.m. Eastern Time on January 22, 2021.
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 10151410. The call will also be audio webcast at:
https://services.choruscall.com/links/trst210122.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
with respect to our online and mobile banking product offerings,
our expectations for the repricing of our CD portfolio, the impact
of Federal Reserve actions regarding interest rates and the growth
of loans and deposits throughout our branch network and our ability
to capitalize on economic changes in the areas in which we operate.
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; future business
strategies related to the implementation of CECL; 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 |
|
|
12/31/2020 |
|
9/30/2020 |
|
12/31/2019 |
Summary of operations |
|
|
|
|
Net interest income (TE) |
$ |
39,182 |
|
38,166 |
|
38,243 |
Provision for loan losses |
|
600 |
|
1,000 |
|
200 |
Noninterest income, excluding net gain on
securities transactions |
|
4,069 |
|
4,341 |
|
4,115 |
Noninterest expense |
|
24,830 |
|
22,674 |
|
23,891 |
Net income |
13,814 |
|
14,071 |
|
13,907 |
|
|
|
|
|
|
|
Per common share |
|
|
|
|
Net income per share: |
|
|
|
|
- Basic |
$ |
0.143 |
|
0.146 |
|
0.143 |
- Diluted |
0.143 |
|
0.146 |
|
0.143 |
Cash dividends |
0.068 |
|
0.068 |
|
0.068 |
Book value at period end |
|
5.89 |
|
5.81 |
|
5.55 |
Market price at period end |
|
6.67 |
|
5.22 |
|
8.67 |
|
|
|
|
|
|
|
At period end |
|
|
|
|
|
Full time equivalent employees |
|
778 |
|
771 |
|
814 |
Full service banking offices |
|
148 |
|
148 |
|
148 |
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
Return on average assets |
|
0.95 |
% |
0.98 |
|
1.06 |
Return on average equity |
|
9.75 |
|
10.04 |
|
10.41 |
Efficiency (1) |
57.31 |
|
53.61 |
|
57.31 |
Net interest spread (TE) |
|
2.72 |
|
2.63 |
|
2.86 |
Net interest margin (TE) |
|
2.79 |
|
2.73 |
|
3.02 |
Dividend payout ratio |
|
47.55 |
|
46.68 |
|
47.48 |
|
|
|
|
|
|
|
Capital ratios at period end |
|
|
|
|
Consolidated tangible equity to tangible assets
(2) |
|
9.62 |
% |
9.76 |
|
10.30 |
Consolidated equity to assets |
|
9.63 |
% |
9.77 |
|
10.31 |
|
|
|
|
|
|
|
Asset quality analysis at period end |
|
|
|
Nonperforming loans to total loans |
|
0.50 |
|
0.52 |
|
0.51 |
Nonperforming assets to total assets |
|
0.37 |
|
0.39 |
|
0.43 |
Allowance for loan losses to total loans |
|
1.17 |
|
1.17 |
|
1.09 |
Coverage ratio (3) |
|
2.4x |
|
2.3x |
|
2.1x |
|
|
|
|
|
|
|
(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) |
|
|
Year
ended |
|
|
12/31/2020 |
|
12/31/2019 |
Summary of operations |
|
|
Net interest income (TE) |
$ |
153,583 |
|
155,812 |
Provision for loan losses |
|
5,600 |
|
159 |
Net gain on securities transactions |
|
1,155 |
|
- |
Noninterest income, excluding net gain on
securities transactions |
|
16,015 |
|
18,591 |
Noninterest expense |
|
95,704 |
|
97,730 |
Net income |
52,452 |
|
57,840 |
|
|
|
|
|
Per common share |
|
|
Net income per share: |
|
|
- Basic |
$ |
0.544 |
|
0.597 |
- Diluted |
0.543 |
|
0.597 |
Cash dividends |
0.273 |
|
0.273 |
Book value at period end |
|
5.89 |
|
5.55 |
Market price at period end |
|
6.67 |
|
8.67 |
|
|
|
|
|
Performance ratios |
|
|
Return on average assets |
|
0.94 |
|
1.12 |
Return on average equity |
|
9.47 |
|
11.26 |
Efficiency (1) |
56.38 |
|
56.13 |
Net interest spread (TE) |
|
2.73 |
|
2.94 |
Net interest margin (TE) |
|
2.84 |
|
3.10 |
Dividend payout ratio |
|
50.12 |
|
45.60 |
|
|
|
|
|
(1) Non-GAAP measure; calculated as noninterest expense (excluding
ORE income/expense) divided by taxable equivalent net interest
income plus noninterest income (excluding net gain on
securities transactions). |
|
|
|
|
|
TE = Taxable equivalent. |
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
|
12/31/2019 |
Interest and dividend income: |
|
|
|
|
|
Interest and fees on loans |
$ |
40,906 |
|
41,330 |
|
|
41,665 |
|
|
42,063 |
|
42,002 |
|
Interest and dividends on securities available
for sale: |
|
|
|
U. S. government
sponsored enterprises |
|
27 |
|
14 |
|
|
106 |
|
|
421 |
|
609 |
|
State and political
subdivisions |
|
2 |
|
1 |
|
|
2 |
|
|
1 |
|
2 |
|
Mortgage-backed
securities and collateralized mortgage |
|
|
|
|
obligations
- residential |
|
1,172 |
|
1,319 |
|
|
1,527 |
|
|
2,113 |
|
2,334 |
|
Corporate bonds |
|
349 |
|
646 |
|
|
488 |
|
|
238 |
|
295 |
|
Small Business
Administration - guaranteed |
|
|
|
|
|
|
participation
securities |
|
212 |
|
216 |
|
|
229 |
|
|
245 |
|
253 |
|
Other securities |
|
7 |
|
5 |
|
|
5 |
|
|
6 |
|
6 |
|
Total interest and dividends on securities
available for sale |
|
1,769 |
|
2,201 |
|
|
2,357 |
|
|
3,024 |
|
3,499 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on held to maturity securities: |
|
|
|
|
|
|
Mortgage-backed
securities and collateralized mortgage |
|
|
|
|
obligations
- residential |
|
129 |
|
138 |
|
|
162 |
|
|
175 |
|
184 |
|
Total interest on held to maturity
securities |
|
129 |
|
138 |
|
|
162 |
|
|
175 |
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
70 |
|
77 |
|
|
192 |
|
|
82 |
|
203 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
federal funds sold and other short-term investments |
|
246 |
|
242 |
|
|
193 |
|
|
1,267 |
|
1,635 |
|
Total interest income |
|
43,120 |
|
43,988 |
|
|
44,569 |
|
|
46,611 |
|
47,523 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
Interest on deposits: |
|
|
|
|
|
|
Interest-bearing
checking |
|
51 |
|
55 |
|
|
26 |
|
|
16 |
|
21 |
|
Savings |
156 |
|
161 |
|
|
166 |
|
|
233 |
|
271 |
|
Money market deposit
accounts |
|
447 |
|
637 |
|
|
862 |
|
|
1,096 |
|
1,175 |
|
Time deposits |
3,053 |
|
4,749 |
|
|
5,599 |
|
|
6,391 |
|
7,468 |
|
Interest on short-term borrowings |
|
232 |
|
221 |
|
|
235 |
|
|
322 |
|
347 |
|
Total interest expense |
|
3,939 |
|
5,823 |
|
|
6,888 |
|
|
8,058 |
|
9,282 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
39,181 |
|
38,165 |
|
|
37,681 |
|
|
38,553 |
|
38,241 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Provision for loan losses |
|
600 |
|
1,000 |
|
|
2,000 |
|
|
2,000 |
|
200 |
|
Net interest income after provision for loan
losses |
|
38,581 |
|
37,165 |
|
|
35,681 |
|
|
36,553 |
|
38,041 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
Trustco Financial Services income |
|
1,527 |
|
1,784 |
|
|
1,368 |
|
|
1,600 |
|
1,454 |
|
Fees for services to customers |
|
2,365 |
|
2,292 |
|
|
1,807 |
|
|
2,315 |
|
2,377 |
|
Net gain on securities transactions |
|
- |
|
- |
|
|
- |
|
|
1,155 |
|
- |
|
Other |
|
177 |
|
265 |
|
|
251 |
|
|
264 |
|
284 |
|
Total noninterest income |
|
4,069 |
|
4,341 |
|
|
3,426 |
|
|
5,334 |
|
4,115 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
11,727 |
|
10,899 |
|
|
11,648 |
|
|
11,373 |
|
11,743 |
|
Net occupancy expense |
|
4,551 |
|
4,277 |
|
|
4,385 |
|
|
4,306 |
|
4,399 |
|
Equipment expense |
|
1,621 |
|
1,607 |
|
|
1,606 |
|
|
1,802 |
|
1,768 |
|
Professional services |
|
1,644 |
|
1,311 |
|
|
1,182 |
|
|
1,481 |
|
1,449 |
|
Outsourced services |
|
1,925 |
|
1,875 |
|
|
1,875 |
|
|
2,075 |
|
1,925 |
|
Advertising expense |
|
527 |
|
305 |
|
|
601 |
|
|
488 |
|
464 |
|
FDIC and other insurance |
|
657 |
|
660 |
|
|
609 |
|
|
294 |
|
259 |
|
Other real estate expense (income) , net |
|
45 |
|
(115 |
) |
|
(32 |
) |
|
194 |
|
(385 |
) |
Other |
|
2,133 |
|
1,855 |
|
|
2,058 |
|
|
2,255 |
|
2,269 |
|
Total noninterest expenses |
|
24,830 |
|
22,674 |
|
|
23,932 |
|
|
24,268 |
|
23,891 |
|
|
|
|
|
|
|
|
|
|
|
|
Income
before taxes |
|
17,820 |
|
18,832 |
|
|
15,175 |
|
|
17,619 |
|
18,265 |
|
Income taxes |
4,006 |
|
4,761 |
|
|
3,921 |
|
|
4,306 |
|
4,358 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13,814 |
|
14,071 |
|
|
11,254 |
|
|
13,313 |
|
13,907 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
- Basic |
$ |
0.143 |
|
0.146 |
|
|
0.117 |
|
|
0.138 |
|
0.143 |
|
|
|
|
|
|
|
|
|
|
|
|
- Diluted |
0.143 |
|
0.146 |
|
|
0.117 |
|
|
0.138 |
|
0.143 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic shares (in thousands) |
|
96,433 |
|
96,433 |
|
|
96,433 |
|
|
96,727 |
|
96,919 |
|
Average
diluted shares (in thousands) |
|
96,442 |
|
96,440 |
|
|
96,437 |
|
|
96,750 |
|
97,015 |
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Taxable equivalent net interest income |
$ |
39,182 |
|
38,166 |
|
|
37,681 |
|
|
38,554 |
|
38,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME, Continued |
|
(dollars in thousands, except per share data) |
(Unaudited) |
|
|
Year
ended |
|
|
12/31/2020 |
|
12/31/2019 |
Interest and dividend income: |
Interest and fees on loans |
$ |
165,964 |
|
166,610 |
|
Interest and dividends on securities available for
sale: |
U. S. government sponsored
enterprises |
|
568 |
|
3,209 |
|
State and political subdivisions |
|
6 |
|
8 |
|
Mortgage-backed securities and
collateralized mortgage |
obligations -
residential |
|
6,131 |
|
8,219 |
|
Corporate bonds |
|
1,721 |
|
1,096 |
|
Small Business Administration -
guaranteed |
participation
securities |
|
902 |
|
1,121 |
|
Other securities |
|
23 |
|
22 |
|
Total interest and
dividends on securities available for sale |
|
9,351 |
|
13,675 |
|
|
|
|
|
|
Interest on held to maturity securities: |
Mortgage-backed
securities-residential |
|
604 |
|
797 |
|
Total interest on held to maturity
securities |
|
604 |
|
797 |
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
421 |
|
568 |
|
|
|
|
|
|
Interest on
federal funds sold and other short-term investments |
|
1,948 |
|
10,478 |
|
Total interest income |
|
178,288 |
|
192,128 |
|
|
|
|
|
|
Interest expense: |
Interest on deposits: |
Interest-bearing
checking |
|
148 |
|
288 |
|
Savings |
716 |
|
1,338 |
|
Money market deposit
accounts |
|
3,042 |
|
4,297 |
|
Time deposits |
19,792 |
|
28,930 |
|
Interest on short-term borrowings |
|
1,010 |
|
1,468 |
|
Total interest expense |
|
24,708 |
|
36,321 |
|
|
|
|
|
|
Net interest income |
|
153,580 |
|
155,807 |
|
|
|
|
|
|
Less: Provision for loan losses |
|
5,600 |
|
159 |
|
Net interest income after provision for loan
losses |
|
147,980 |
|
155,648 |
|
|
|
|
|
|
Noninterest income: |
|
|
Trustco Financial Services income |
|
6,279 |
|
6,387 |
|
Fees for services to customers |
|
8,779 |
|
10,110 |
|
Net gain on securities transactions |
|
1,155 |
|
- |
|
Other |
|
957 |
|
2,094 |
|
Total noninterest income |
|
17,170 |
|
18,591 |
|
|
|
|
|
|
Noninterest expenses: |
|
|
Salaries and employee benefits |
|
45,647 |
|
46,630 |
|
Net occupancy expense |
|
17,519 |
|
16,666 |
|
Equipment expense |
|
6,636 |
|
7,068 |
|
Professional services |
|
5,618 |
|
6,174 |
|
Outsourced services |
|
7,750 |
|
7,600 |
|
Advertising expense |
|
1,921 |
|
2,521 |
|
FDIC and other insurance |
|
2,220 |
|
1,787 |
|
Other real estate expense (income), net |
|
92 |
|
(166 |
) |
Other |
|
8,301 |
|
9,450 |
|
Total noninterest expenses |
|
95,704 |
|
97,730 |
|
|
|
|
|
|
Income
before taxes |
|
69,446 |
|
76,509 |
|
Income taxes |
16,994 |
|
18,669 |
|
|
|
|
|
|
Net
income |
$ |
52,452 |
|
57,840 |
|
|
|
|
|
|
Net income per common share: |
- Basic |
$ |
0.544 |
|
0.597 |
|
|
|
|
|
|
- Diluted |
0.543 |
|
0.597 |
|
|
|
|
|
|
Average
basic shares (in thousands) |
|
96,506 |
|
96,849 |
|
Average
diluted shares (in thousands) |
|
96,517 |
|
96,927 |
|
|
|
|
|
|
Note:
Taxable equivalent net interest income |
$ |
153,583 |
|
155,812 |
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
(dollars in
thousands) |
(Unaudited) |
|
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
|
12/31/2019 |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
47,196 |
|
|
47,703 |
|
|
44,726 |
|
|
43,362 |
|
|
48,198 |
|
Federal
funds sold and other short term investments |
|
1,059,903 |
|
|
908,616 |
|
|
908,110 |
|
|
492,691 |
|
|
408,648 |
|
Total cash and cash
equivalents |
|
1,107,099 |
|
|
956,319 |
|
|
952,836 |
|
|
536,053 |
|
|
456,846 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale: |
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
|
19,968 |
|
|
29,996 |
|
|
- |
|
|
54,970 |
|
|
104,512 |
|
States and political subdivisions |
|
103 |
|
|
111 |
|
|
111 |
|
|
112 |
|
|
162 |
|
Mortgage-backed securities and collateralized
mortgage |
|
|
|
|
|
obligations - residential |
|
316,158 |
|
|
309,768 |
|
|
331,469 |
|
|
352,067 |
|
|
389,517 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
participation securities |
|
42,217 |
|
|
44,070 |
|
|
45,998 |
|
|
46,768 |
|
|
48,511 |
|
Corporate bonds |
|
59,939 |
|
|
70,113 |
|
|
54,439 |
|
|
48,564 |
|
|
30,436 |
|
Other securities |
686 |
|
|
685 |
|
|
685 |
|
|
685 |
|
|
685 |
|
Total securities
available for sale |
|
439,071 |
|
|
454,743 |
|
|
432,702 |
|
|
503,166 |
|
|
573,823 |
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity securities: |
|
|
|
|
|
|
|
|
Mortgage-backed securities and collateralized
mortgage |
|
|
|
|
|
obligations-residential |
|
13,824 |
|
|
15,094 |
|
|
16,633 |
|
|
17,720 |
|
|
18,618 |
|
Total held to
maturity securities |
|
13,824 |
|
|
15,094 |
|
|
16,633 |
|
|
17,720 |
|
|
18,618 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
5,506 |
|
|
5,506 |
|
|
5,506 |
|
|
9,183 |
|
|
9,183 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
212,492 |
|
|
231,663 |
|
|
231,212 |
|
|
195,805 |
|
|
199,499 |
|
Residential mortgage loans |
|
3,780,167 |
|
|
3,724,746 |
|
|
3,681,898 |
|
|
3,627,121 |
|
|
3,583,774 |
|
Home equity line of credit |
|
242,194 |
|
|
248,320 |
|
|
254,445 |
|
|
265,753 |
|
|
267,922 |
|
Installment loans |
|
9,617 |
|
|
9,826 |
|
|
10,006 |
|
|
10,713 |
|
|
11,001 |
|
Loans, net
of deferred net costs |
|
4,244,470 |
|
|
4,214,555 |
|
|
4,177,561 |
|
|
4,099,392 |
|
|
4,062,196 |
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Allowance for loan losses |
|
49,595 |
|
|
49,123 |
|
|
48,144 |
|
|
46,155 |
|
|
44,317 |
|
Net loans |
4,194,875 |
|
|
4,165,432 |
|
|
4,129,417 |
|
|
4,053,237 |
|
|
4,017,879 |
|
|
|
|
|
|
|
|
|
|
|
|
Bank
premises and equipment, net |
|
34,412 |
|
|
34,417 |
|
|
34,042 |
|
|
34,428 |
|
|
34,622 |
|
Operating
lease right-of-use assets |
|
47,885 |
|
|
47,174 |
|
|
48,712 |
|
|
49,955 |
|
|
51,475 |
|
Other assets |
59,124 |
|
|
57,244 |
|
|
57,155 |
|
|
52,905 |
|
|
58,876 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,901,796 |
|
|
5,735,929 |
|
|
5,677,003 |
|
|
5,256,647 |
|
|
5,221,322 |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Demand |
$ |
652,756 |
|
|
635,345 |
|
|
612,960 |
|
|
480,255 |
|
|
463,858 |
|
Interest-bearing checking |
|
1,086,558 |
|
|
1,024,290 |
|
|
1,001,592 |
|
|
895,254 |
|
|
875,672 |
|
Savings accounts |
|
1,285,501 |
|
|
1,235,259 |
|
|
1,191,682 |
|
|
1,122,116 |
|
|
1,113,146 |
|
Money market deposit accounts |
|
716,005 |
|
|
699,132 |
|
|
666,304 |
|
|
617,198 |
|
|
599,163 |
|
Time deposits |
1,296,373 |
|
|
1,305,024 |
|
|
1,392,769 |
|
|
1,367,005 |
|
|
1,398,177 |
|
Total deposits |
5,037,193 |
|
|
4,899,050 |
|
|
4,865,307 |
|
|
4,481,828 |
|
|
4,450,016 |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
214,755 |
|
|
193,455 |
|
|
177,278 |
|
|
148,090 |
|
|
148,666 |
|
Operating
lease liabilities |
|
52,784 |
|
|
52,125 |
|
|
53,710 |
|
|
54,998 |
|
|
56,553 |
|
Accrued
expenses and other liabilities |
|
28,903 |
|
|
30,771 |
|
|
27,287 |
|
|
23,546 |
|
|
27,830 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
5,333,635 |
|
|
5,175,401 |
|
|
5,123,582 |
|
|
4,708,462 |
|
|
4,683,065 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Capital stock |
100,205 |
|
|
100,205 |
|
|
100,205 |
|
|
100,205 |
|
|
100,205 |
|
Surplus |
|
176,442 |
|
|
176,441 |
|
|
176,437 |
|
|
176,431 |
|
|
176,427 |
|
Undivided profits |
313,974 |
|
|
306,741 |
|
|
299,239 |
|
|
294,553 |
|
|
288,067 |
|
Accumulated
other comprehensive income, net of tax |
|
11,936 |
|
|
11,537 |
|
|
11,936 |
|
|
11,392 |
|
|
4,461 |
|
Treasury
stock at cost |
|
(34,396 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
(30,903 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
|
568,161 |
|
|
560,528 |
|
|
553,421 |
|
|
548,185 |
|
|
538,257 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity |
$ |
5,901,796 |
|
|
5,735,929 |
|
|
5,677,003 |
|
|
5,256,647 |
|
|
5,221,322 |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding
shares (in thousands) |
|
96,433 |
|
|
96,433 |
|
|
96,433 |
|
|
96,433 |
|
|
96,922 |
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING
ASSETS |
|
|
|
|
|
|
|
(dollars in
thousands) |
(Unaudited) |
|
|
12/31/2020 |
9/30/2020 |
6/30/2020 |
3/31/2020 |
12/31/2019 |
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
452 |
|
491 |
|
571 |
|
630 |
|
816 |
|
Real estate mortgage - 1
to 4 family |
|
19,379 |
|
19,977 |
|
20,215 |
|
18,570 |
|
18,407 |
|
Installment |
|
43 |
|
49 |
|
6 |
|
24 |
|
3 |
|
Total non-accrual loans |
|
19,874 |
|
20,517 |
|
20,792 |
|
19,224 |
|
19,226 |
|
Other nonperforming real estate mortgages - 1 to
4 family |
|
23 |
|
25 |
|
26 |
|
27 |
|
29 |
|
Total nonperforming loans |
|
19,897 |
|
20,542 |
|
20,818 |
|
19,251 |
|
19,255 |
|
Other real estate owned |
|
541 |
|
423 |
|
830 |
|
1,284 |
|
1,579 |
|
Total nonperforming assets |
$ |
20,438 |
|
20,965 |
|
21,648 |
|
20,535 |
|
20,834 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1
to 4 family |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
1,614 |
|
Installment |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total non-accrual loans |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
1,614 |
|
Other nonperforming real estate mortgages - 1 to
4 family |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming loans |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
1,614 |
|
Other real estate owned |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming assets |
$ |
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
1,614 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
452 |
|
491 |
|
571 |
|
630 |
|
816 |
|
Real estate mortgage - 1
to 4 family |
|
20,566 |
|
21,231 |
|
21,326 |
|
20,062 |
|
20,021 |
|
Installment |
|
43 |
|
49 |
|
6 |
|
24 |
|
3 |
|
Total non-accrual loans |
|
21,061 |
|
21,771 |
|
21,903 |
|
20,716 |
|
20,840 |
|
Other nonperforming real estate mortgages - 1 to
4 family |
|
23 |
|
25 |
|
26 |
|
27 |
|
29 |
|
Total nonperforming loans |
|
21,084 |
|
21,796 |
|
21,929 |
|
20,743 |
|
20,869 |
|
Other real estate owned |
|
541 |
|
423 |
|
830 |
|
1,284 |
|
1,579 |
|
Total nonperforming assets |
$ |
21,625 |
|
22,219 |
|
22,759 |
|
22,027 |
|
22,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net (Recoveries) Chargeoffs |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Commercial |
$ |
32 |
|
(1 |
) |
(6 |
) |
1 |
|
(1 |
) |
Real estate mortgage - 1 to 4 family |
|
(27 |
) |
4 |
|
(27 |
) |
140 |
|
146 |
|
Installment |
|
109 |
|
18 |
|
44 |
|
4 |
|
67 |
|
Total net (recoveries)
chargeoffs |
$ |
114 |
|
21 |
|
11 |
|
145 |
|
212 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1 to 4 family |
|
(1 |
) |
- |
|
- |
|
(2 |
) |
(1 |
) |
Installment |
|
15 |
|
- |
|
- |
|
19 |
|
1 |
|
Total net (recoveries)
chargeoffs |
$ |
14 |
|
- |
|
- |
|
17 |
|
- |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Commercial |
$ |
32 |
|
(1 |
) |
(6 |
) |
1 |
|
(1 |
) |
Real estate mortgage - 1 to 4 family |
|
(28 |
) |
4 |
|
(27 |
) |
138 |
|
145 |
|
Installment |
|
124 |
|
18 |
|
44 |
|
23 |
|
68 |
|
Total net (recoveries)
chargeoffs |
$ |
128 |
|
21 |
|
11 |
|
162 |
|
212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming loans (1) |
$ |
21,084 |
|
21,796 |
|
21,929 |
|
20,743 |
|
20,869 |
|
Total
nonperforming assets (1) |
|
21,625 |
|
22,219 |
|
22,759 |
|
22,027 |
|
22,448 |
|
Total net
(recoveries) chargeoffs (2) |
|
128 |
|
21 |
|
11 |
|
162 |
|
212 |
|
|
|
|
|
|
|
|
Allowance
for loan losses (1) |
|
49,595 |
|
49,123 |
|
48,144 |
|
46,155 |
|
44,317 |
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.50 |
% |
0.52 |
% |
0.52 |
% |
0.51 |
% |
0.51 |
% |
Nonperforming assets to total assets |
|
0.37 |
% |
0.39 |
% |
0.40 |
% |
0.42 |
% |
0.43 |
% |
Allowance
for loan losses to total loans |
|
1.17 |
% |
1.17 |
% |
1.15 |
% |
1.13 |
% |
1.09 |
% |
Coverage
ratio (1) |
|
235.2 |
% |
225.4 |
% |
219.5 |
% |
222.5 |
% |
212.4 |
% |
Annualized
net chargeoffs to average loans (2) |
|
0.01 |
% |
0.00 |
% |
0.00 |
% |
0.02 |
% |
0.02 |
% |
Allowance
for loan losses to annualized net chargeoffs (2) |
|
96.9 |
x |
584.8 |
x |
1094.2 |
x |
71.2 |
x |
52.3 |
x |
|
* 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 |
|
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
25,761 |
|
|
27 |
|
0.42 |
% |
$ |
127,284 |
|
|
609 |
|
1.91 |
% |
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
314,022 |
|
|
1,172 |
|
1.49 |
|
|
396,335 |
|
|
2,334 |
|
2.36 |
|
State and political subdivisions |
|
108 |
|
|
3 |
|
7.89 |
|
|
165 |
|
|
4 |
|
9.70 |
|
Corporate bonds |
|
64,534 |
|
|
349 |
|
2.17 |
|
|
37,795 |
|
|
295 |
|
3.12 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
|
|
participation securities |
|
41,562 |
|
|
212 |
|
2.05 |
|
|
49,787 |
|
|
253 |
|
2.03 |
|
Other |
|
685 |
|
|
7 |
|
4.09 |
|
|
685 |
|
|
6 |
|
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
securities available for sale |
|
446,672 |
|
|
1,770 |
|
1.59 |
|
|
612,051 |
|
|
3,501 |
|
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
funds sold and other short-term Investments |
|
916,198 |
|
|
246 |
|
0.11 |
|
|
395,311 |
|
|
1,635 |
|
1.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to
maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
14,406 |
|
|
129 |
|
3.58 |
|
|
19,185 |
|
|
184 |
|
3.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
held to maturity securities |
|
14,406 |
|
|
129 |
|
3.58 |
|
|
19,185 |
|
|
184 |
|
3.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
5,506 |
|
|
70 |
|
5.09 |
|
|
9,183 |
|
|
203 |
|
8.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans |
|
224,838 |
|
|
3,009 |
|
5.35 |
|
|
192,427 |
|
|
2,517 |
|
5.23 |
|
Residential
mortgage loans |
|
3,756,304 |
|
|
35,368 |
|
3.77 |
|
|
3,547,219 |
|
|
36,179 |
|
4.08 |
|
Home equity
lines of credit |
|
245,401 |
|
|
2,361 |
|
3.83 |
|
|
270,766 |
|
|
3,110 |
|
4.59 |
|
Installment
loans |
|
9,416 |
|
|
168 |
|
7.09 |
|
|
10,682 |
|
|
196 |
|
7.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
of unearned income |
|
4,235,959 |
|
|
40,906 |
|
3.86 |
|
|
4,021,094 |
|
|
42,002 |
|
4.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest earning assets |
|
5,618,741 |
|
|
43,121 |
|
3.07 |
|
|
5,056,824 |
|
|
47,525 |
|
3.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
(49,426 |
) |
|
|
|
|
|
(44,320 |
) |
|
|
|
|
Cash &
non-interest earning assets |
|
201,371 |
|
|
|
|
|
|
188,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
5,770,686 |
|
|
|
|
|
$ |
5,201,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
1,036,808 |
|
|
51 |
|
0.02 |
% |
$ |
864,774 |
|
|
21 |
|
0.01 |
% |
Money market accounts |
|
710,105 |
|
|
447 |
|
0.25 |
|
|
583,048 |
|
|
1,175 |
|
0.81 |
|
Savings |
|
1,258,666 |
|
|
156 |
|
0.05 |
|
|
1,111,259 |
|
|
271 |
|
0.10 |
|
Time deposits |
|
1,284,075 |
|
|
3,053 |
|
0.95 |
|
|
1,422,049 |
|
|
7,468 |
|
2.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,289,654 |
|
|
3,707 |
|
0.34 |
|
|
3,981,130 |
|
|
8,935 |
|
0.90 |
|
Short-term
borrowings |
|
200,028 |
|
|
232 |
|
0.46 |
|
|
154,898 |
|
|
347 |
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,489,682 |
|
|
3,939 |
|
0.35 |
|
|
4,136,028 |
|
|
9,282 |
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
640,190 |
|
|
|
|
|
|
454,585 |
|
|
|
|
|
Other
liabilities |
|
77,197 |
|
|
|
|
|
|
80,386 |
|
|
|
|
|
Shareholders' equity |
|
563,617 |
|
|
|
|
|
|
530,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
5,770,686 |
|
|
|
|
|
$ |
5,201,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, tax equivalent |
|
|
|
39,182 |
|
|
|
|
|
|
38,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
2.72 |
% |
|
|
|
|
2.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (net interest income to |
|
|
|
|
|
|
|
|
|
|
|
|
total interest earning assets) |
|
|
|
|
2.79 |
% |
|
|
|
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
equivalent adjustment |
|
|
|
(1 |
) |
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
39,181 |
|
|
|
|
|
|
38,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION
OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY - |
INTEREST RATES
AND INTEREST DIFFERENTIAL, Continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Year ended |
|
|
Year ended |
|
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
38,508 |
|
|
568 |
|
1.48 |
% |
$ |
156,292 |
|
|
3,209 |
|
2.05 |
% |
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
333,093 |
|
|
6,131 |
|
1.84 |
|
|
345,718 |
|
|
8,219 |
|
2.38 |
|
State and political subdivisions |
|
111 |
|
|
9 |
|
7.82 |
|
|
167 |
|
|
13 |
|
7.78 |
|
Corporate bonds |
|
50,982 |
|
|
1,721 |
|
3.38 |
|
|
34,637 |
|
|
1,096 |
|
3.16 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
|
|
participation securities |
|
44,379 |
|
|
902 |
|
2.03 |
|
|
53,269 |
|
|
1,121 |
|
2.10 |
|
Other |
|
686 |
|
|
23 |
|
3.35 |
|
|
685 |
|
|
22 |
|
3.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
securities available for sale |
|
467,759 |
|
|
9,354 |
|
2.00 |
|
|
590,768 |
|
|
13,680 |
|
2.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
funds sold and other short-term Investments |
|
748,085 |
|
|
1,948 |
|
0.26 |
|
|
477,181 |
|
|
10,478 |
|
2.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to
maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
16,376 |
|
|
604 |
|
3.69 |
|
|
20,643 |
|
|
797 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
held to maturity securities |
|
16,376 |
|
|
604 |
|
3.69 |
|
|
20,643 |
|
|
797 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
7,381 |
|
|
421 |
|
5.70 |
|
|
9,123 |
|
|
568 |
|
6.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans |
|
219,328 |
|
|
10,788 |
|
4.92 |
|
|
191,636 |
|
|
10,243 |
|
5.35 |
|
Residential
mortgage loans |
|
3,678,536 |
|
|
144,212 |
|
3.92 |
|
|
3,445,940 |
|
|
141,964 |
|
4.12 |
|
Home equity
lines of credit |
|
255,583 |
|
|
10,259 |
|
4.01 |
|
|
277,905 |
|
|
13,551 |
|
4.88 |
|
Installment
loans |
|
9,952 |
|
|
705 |
|
7.08 |
|
|
10,718 |
|
|
852 |
|
7.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
of unearned income |
|
4,163,399 |
|
|
165,964 |
|
3.99 |
|
|
3,926,199 |
|
|
166,610 |
|
4.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest earning assets |
|
5,403,000 |
|
|
178,291 |
|
3.30 |
|
|
5,023,914 |
|
|
192,133 |
|
3.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
(47,330 |
) |
|
|
|
|
|
(44,639 |
) |
|
|
|
|
Cash &
non-interest earning assets |
|
197,966 |
|
|
|
|
|
|
182,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
5,553,636 |
|
|
|
|
|
$ |
5,161,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
971,385 |
|
|
148 |
|
0.02 |
% |
$ |
874,700 |
|
|
288 |
|
0.03 |
% |
Money market accounts |
|
662,107 |
|
|
3,042 |
|
0.46 |
|
|
555,547 |
|
|
4,297 |
|
0.77 |
|
Savings |
|
1,191,532 |
|
|
716 |
|
0.06 |
|
|
1,134,050 |
|
|
1,338 |
|
0.12 |
|
Time deposits |
|
1,350,163 |
|
|
19,792 |
|
1.47 |
|
|
1,417,487 |
|
|
28,930 |
|
2.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,175,187 |
|
|
23,698 |
|
0.57 |
|
|
3,981,784 |
|
|
34,853 |
|
0.88 |
|
Short-term
borrowings |
|
180,065 |
|
|
1,010 |
|
0.56 |
|
|
159,220 |
|
|
1,468 |
|
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,355,252 |
|
|
24,708 |
|
0.57 |
|
|
4,141,004 |
|
|
36,321 |
|
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
567,265 |
|
|
|
|
|
|
427,276 |
|
|
|
|
|
Other
liabilities |
|
77,487 |
|
|
|
|
|
|
80,051 |
|
|
|
|
|
Shareholders' equity |
|
553,632 |
|
|
|
|
|
|
513,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
5,553,636 |
|
|
|
|
|
$ |
5,161,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, tax equivalent |
|
|
|
153,583 |
|
|
|
|
|
|
155,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
2.73 |
% |
|
|
|
|
2.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (net interest income to |
|
|
|
|
|
|
|
|
|
|
|
|
total interest earning assets) |
|
|
|
|
2.84 |
% |
|
|
|
|
3.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
equivalent adjustment |
|
|
|
(3 |
) |
|
|
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
153,580 |
|
|
|
|
|
|
155,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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) |
|
|
|
|
|
|
|
|
|
Tangible Book Value Per Share |
|
12/31/2020 |
9/30/2020 |
12/31/2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
(GAAP) |
$ |
568,161 |
|
560,528 |
|
538,257 |
|
|
|
|
|
Less:
Intangible assets |
|
553 |
|
553 |
|
553 |
|
|
|
|
|
Tangible equity (Non-GAAP) |
|
567,608 |
|
559,975 |
|
537,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
96,433 |
|
96,433 |
|
96,922 |
|
|
|
|
|
Tangible
book value per share (Non-GAAP) |
|
5.89 |
|
5.81 |
|
5.55 |
|
|
|
|
|
Book value
per share (GAAP) |
|
5.89 |
|
5.81 |
|
5.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
(GAAP) |
$ |
5,901,796 |
|
5,735,929 |
|
5,221,322 |
|
|
|
|
|
Less:
Intangible assets |
|
553 |
|
553 |
|
553 |
|
|
|
|
|
Tangible assets (Non-GAAP) |
|
5,901,243 |
|
5,735,376 |
|
5,220,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity to Tangible Assets (Non-GAAP) |
|
9.62 |
% |
9.76 |
% |
10.30 |
% |
|
|
|
|
Equity to
Assets (GAAP) |
|
9.63 |
% |
9.77 |
% |
10.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended |
Efficiency Ratio |
|
12/31/2020 |
9/30/2020 |
12/31/2019 |
|
|
12/31/2020 |
12/31/2019 |
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
39,181 |
|
38,165 |
|
38,241 |
|
|
$ |
153,580 |
|
155,807 |
|
Taxable
equivalent adjustment |
|
1 |
|
1 |
|
2 |
|
|
|
3 |
|
5 |
|
Net interest
income (fully taxable equivalent) (Non-GAAP) |
|
39,182 |
|
38,166 |
|
38,243 |
|
|
|
153,583 |
|
155,812 |
|
Non-interest
income (GAAP) |
|
4,069 |
|
4,341 |
|
4,115 |
|
|
|
17,170 |
|
18,591 |
|
Less: Net
gain on securities |
|
- |
|
- |
|
- |
|
|
|
1,155 |
|
- |
|
Revenue used for efficiency ratio (Non-GAAP) |
|
43,251 |
|
42,507 |
|
42,358 |
|
|
|
169,598 |
|
174,403 |
|
|
|
|
|
|
|
|
|
|
Total
noninterest expense (GAAP) |
|
24,830 |
|
22,674 |
|
23,891 |
|
|
|
95,704 |
|
97,730 |
|
Less: Other
real estate (income) expense, net |
|
45 |
|
(115 |
) |
(385 |
) |
|
|
92 |
|
(166 |
) |
Expense used for efficiency ratio (Non-GAAP) |
|
24,785 |
|
22,789 |
|
24,276 |
|
|
|
95,612 |
|
97,896 |
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio |
|
57.31 |
% |
53.61 |
% |
57.31 |
% |
|
|
56.38 |
% |
56.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary: Trustco
Bank
Contact:Robert LeonardExecutive Vice President
and Chief Risk
Officer(518) 381-3693
TrustCo Bank Corporation... (NASDAQ:TRST)
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