TrustCo Bank Corp NY
(TrustCo, NASDAQ: TRST) today
announced first quarter 2021 net income of $14.1 million or $0.146
diluted earnings per share. Average residential loan
growth increased 5.2% or $187.5 million for the first quarter 2021
compared to the first quarter 2020.
SummaryRobert J. McCormick,
Chairman, President and Chief Executive Officer noted, “Trustco
Bank has remained a “hometown bank” for thousands of our customers
and community members during one of our nation’s most challenging
years. Over the last year, we prioritized strengthening our
communities and adapting our offerings to address the changing
needs of our customers during the COVID-19 pandemic. Despite the
uncertainty, our reliable and consistent approach has left us
well-positioned to help our customers through this economic
disruption and turmoil.”
Overall we are very pleased to share that
TrustCo now has assets in excess of $6 billion. Our Northeast
region has steadfastly maintained our core franchise in an area
that we have served for decades. Additionally, our Florida region
passed two major milestones, reaching over $1 billion in deposits
and $1 billion in loans. Our Financial Services Department also has
over $1 billion in assets under management. As we enter a
traditionally busy season for residential lending, the Bank is
ready to deploy its existing liquidity into our residential loan
portfolio and we will be paying close attention to how the market
changes.
We also continue to closely monitor the impact
of the pandemic on our business and results of operations. 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. As of March 31, 2021,
loans in deferral were not material. Additionally, the Bank had
funded 663 Paycheck Protection Program (“PPP”) loans totaling $46
million in 2020, and an additional $17 million in the first quarter
of 2021. As of March 31, 2021, 531 PPP loans totaling $37 million
remain outstanding.
Details
Average loans were up $173.3 million or 4.3% in
the first quarter 2021 over the same period in 2020. Average
residential loans, our primary lending focus, were up $187.5
million, or 5.2%, in the first quarter 2021 over the same period in
2020. Average deposits were up $630.3 million or 14.2% for the
first quarter 2021 over the same period a year earlier. The
increase in deposits was the result of a $738.2 million or 24.1%
increase in 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 $108.0 million or 7.9%, for the first quarter 2021 over
the same period in 2020. Within the core deposits, checking
balances were up $428.4 million or 32.2% (including interest
bearing and non-interest bearing checking balances), money market
balances were up $111.4 million or 18.1%, and savings balances were
up $198.5 million or 17.8%. 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 0.21% in the first quarter 2021 from 0.79% in the
first quarter 2020. A significant portion of our CD portfolio (time
deposits) repriced during the last year, which resulted in a
decrease in average rates to 0.54% in the first quarter of 2021
from 1.88% in the first quarter of 2020, as a result of the ongoing
market conditions. The net interest margin for the first quarter
2021 was 2.78%, down 27 basis points from 3.05% in the first
quarter of 2020. This was primarily due to the decrease in market
rates throughout 2020 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 $28.6 million or
5.3% in the first quarter of 2021 compared to the same period in
2020. Return on average assets and return on average equity for the
first quarter 2021 were 0.96% and 10.01%, respectively, compared to
1.03% and 9.87% for the first quarter 2020. 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 $21.6
million at March 31, 2021, compared to $20.7 million at March 31,
2020. NPLs were 0.51% of total loans at March 31, 2021 and 2020,
respectively. The coverage ratio, or allowance for loan losses to
NPLs, was 231.1% at March 31, 2021, compared to 222.5% at March 31,
2020. Nonperforming assets (NPAs) were $22.1 million at March 31,
2021, compared to $22.0 million at March 31, 2020. The ratio of
allowance for loan losses to total loans was 1.17% as of March 31,
2021, compared to 1.13% at March 31, 2020. The allowance for loan
losses was $50.0 million at March 31, 2021, compared to $46.2
million at March 31, 2020. The provision for loan losses decreased
to $350 thousand for the first quarter 2021 compared to $2 million
in the same period in the prior year, primarily driven by the
beginning of the uncertainty in the economic environment resulting
from the COVID-19 pandemic in the same period in the prior year.
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 legislation, which became law in
December 2020, and therefore the Company intends to adopt CECL on
January 1, 2022.
Net recoveries for the first quarter 2021 were
$46 thousand versus net chargeoffs in the first quarter 2020 of
$162 thousand. The annualized net chargeoffs ratio was 0.00% and
0.02% for the first quarter 2021 and 2020, respectively.
At March 31, 2021 the tangible equity to
tangible asset ratio was 9.44%, compared to 10.42% at March 31,
2020. Book value per share at March 31, 2021 was $5.92, up 4.2%
compared to $5.68 a year earlier.
TrustCo Bank Corp NY is a $6.0 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 March 31, 2021.
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 first quarter 2021
results will be held at 9:00 a.m. Eastern Time on April 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 10153602. The call will also be audio webcast at:
https://services.choruscall.com/links/trst210422.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 the effect of our proposed reverse stock split of
our common stock, including the impact of such split on the trading
price of our common stock, 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 |
|
|
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
Summary of operations |
|
|
|
|
|
|
Net interest income (TE) |
$ |
40,107 |
|
39,182 |
|
38,554 |
Provision for loan losses |
|
350 |
|
600 |
|
2,000 |
Noninterest income |
|
4,428 |
|
4,069 |
|
5,334 |
Noninterest expense |
|
25,335 |
|
24,830 |
|
24,268 |
Net income |
|
14,083 |
|
13,814 |
|
13,313 |
|
|
|
|
|
|
|
Per common share |
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
- Basic |
$ |
0.146 |
|
0.143 |
|
0.138 |
- Diluted |
|
0.146 |
|
0.143 |
|
0.138 |
Cash dividends |
|
0.068 |
|
0.068 |
|
0.068 |
Book value at period end |
|
5.92 |
|
5.89 |
|
5.68 |
Market price at period end |
|
7.37 |
|
6.67 |
|
5.41 |
|
|
|
|
|
|
|
At period end |
|
|
|
|
|
|
Full time equivalent employees |
|
820 |
|
778 |
|
813 |
Full service banking offices |
|
148 |
|
148 |
|
148 |
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
Return on average assets |
|
0.96 |
% |
0.95 |
|
1.03 |
Return on average equity |
|
10.01 |
|
9.75 |
|
9.87 |
Efficiency (1) |
|
56.35 |
|
57.31 |
|
56.34 |
Net interest spread (TE) |
|
2.74 |
|
2.72 |
|
2.91 |
Net interest margin (TE) |
|
2.78 |
|
2.79 |
|
3.05 |
Dividend payout ratio |
|
46.65 |
|
47.55 |
|
49.41 |
|
|
|
|
|
|
|
Capital ratios at period
end |
|
|
|
|
|
|
Consolidated tangible equity to tangible assets (2) |
|
9.44 |
% |
9.62 |
|
10.42 |
Consolidated equity to assets |
|
9.44 |
% |
9.63 |
|
10.43 |
|
|
|
|
|
|
|
Asset quality analysis at
period end |
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.51 |
|
0.50 |
|
0.51 |
Nonperforming assets to total assets |
|
0.36 |
|
0.37 |
|
0.42 |
Allowance for loan losses to total loans |
|
1.17 |
|
1.17 |
|
1.13 |
Coverage ratio (3) |
|
2.3x |
|
2.4x |
|
2.2x |
|
|
|
|
|
|
|
(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
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
|
6/30/2020 |
|
|
3/31/2020 |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
40,217 |
|
40,906 |
|
41,330 |
|
|
41,665 |
|
|
42,063 |
Interest and dividends on securities available for sale: |
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
|
50 |
|
27 |
|
14 |
|
|
106 |
|
|
421 |
State and political subdivisions |
|
1 |
|
2 |
|
1 |
|
|
2 |
|
|
1 |
Mortgage-backed securities and collateralized mortgage obligations
- residential |
|
1,237 |
|
1,172 |
|
1,319 |
|
|
1,527 |
|
|
2,113 |
Corporate bonds |
|
316 |
|
349 |
|
646 |
|
|
488 |
|
|
238 |
Small Business Administration - guaranteed participation
securities |
|
206 |
|
212 |
|
216 |
|
|
229 |
|
|
245 |
Other securities |
|
6 |
|
7 |
|
5 |
|
|
5 |
|
|
6 |
Total interest and dividends on securities available for sale |
|
1,816 |
|
1,769 |
|
2,201 |
|
|
2,357 |
|
|
3,024 |
|
|
|
|
|
|
|
|
|
|
|
Interest on held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities and collateralized mortgage obligations
- residential |
|
123 |
|
129 |
|
138 |
|
|
162 |
|
|
175 |
Total interest on held to maturity securities |
|
123 |
|
129 |
|
138 |
|
|
162 |
|
|
175 |
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
69 |
|
70 |
|
77 |
|
|
192 |
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
Interest on federal funds sold
and other short-term investments |
|
270 |
|
246 |
|
242 |
|
|
193 |
|
|
1,267 |
Total interest income |
|
42,495 |
|
43,120 |
|
43,988 |
|
|
44,569 |
|
|
46,611 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Interest on deposits: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
|
52 |
|
51 |
|
55 |
|
|
26 |
|
|
16 |
Savings |
|
159 |
|
156 |
|
161 |
|
|
166 |
|
|
233 |
Money market deposit accounts |
|
283 |
|
447 |
|
637 |
|
|
862 |
|
|
1,096 |
Time deposits |
|
1,666 |
|
3,053 |
|
4,749 |
|
|
5,599 |
|
|
6,391 |
Interest on short-term borrowings |
|
228 |
|
232 |
|
221 |
|
|
235 |
|
|
322 |
Total interest expense |
|
2,388 |
|
3,939 |
|
5,823 |
|
|
6,888 |
|
|
8,058 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
40,107 |
|
39,181 |
|
38,165 |
|
|
37,681 |
|
|
38,553 |
|
|
|
|
|
|
|
|
|
|
|
Less: Provision for loan losses |
|
350 |
|
600 |
|
1,000 |
|
|
2,000 |
|
|
2,000 |
Net interest income after provision for loan losses |
|
39,757 |
|
38,581 |
|
37,165 |
|
|
35,681 |
|
|
36,553 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Trustco Financial Services income |
|
2,035 |
|
1,527 |
|
1,784 |
|
|
1,368 |
|
|
1,600 |
Fees for services to customers |
|
2,204 |
|
2,365 |
|
2,292 |
|
|
1,807 |
|
|
2,315 |
Net gain on securities transactions |
|
- |
|
- |
|
- |
|
|
- |
|
|
1,155 |
Other |
|
189 |
|
177 |
|
265 |
|
|
251 |
|
|
264 |
Total noninterest income |
|
4,428 |
|
4,069 |
|
4,341 |
|
|
3,426 |
|
|
5,334 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
12,425 |
|
11,727 |
|
10,899 |
|
|
11,648 |
|
|
11,373 |
Net occupancy expense |
|
4,586 |
|
4,551 |
|
4,277 |
|
|
4,385 |
|
|
4,306 |
Equipment expense |
|
1,631 |
|
1,621 |
|
1,607 |
|
|
1,606 |
|
|
1,802 |
Professional services |
|
1,432 |
|
1,644 |
|
1,311 |
|
|
1,182 |
|
|
1,481 |
Outsourced services |
|
2,250 |
|
1,925 |
|
1,875 |
|
|
1,875 |
|
|
2,075 |
Advertising expense |
|
354 |
|
527 |
|
305 |
|
|
601 |
|
|
488 |
FDIC and other insurance |
|
707 |
|
657 |
|
660 |
|
|
609 |
|
|
294 |
Other real estate expense (income), net |
|
239 |
|
45 |
|
(115 |
) |
|
(32 |
) |
|
194 |
Other |
|
1,711 |
|
2,133 |
|
1,855 |
|
|
2,058 |
|
|
2,255 |
Total noninterest expenses |
|
25,335 |
|
24,830 |
|
22,674 |
|
|
23,932 |
|
|
24,268 |
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
18,850 |
|
17,820 |
|
18,832 |
|
|
15,175 |
|
|
17,619 |
Income taxes |
|
4,767 |
|
4,006 |
|
4,761 |
|
|
3,921 |
|
|
4,306 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
14,083 |
|
13,814 |
|
14,071 |
|
|
11,254 |
|
|
13,313 |
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
- Basic |
$ |
0.146 |
|
0.143 |
|
0.146 |
|
|
0.117 |
|
|
0.138 |
|
|
|
|
|
|
|
|
|
|
|
- Diluted |
|
0.146 |
|
0.143 |
|
0.146 |
|
|
0.117 |
|
|
0.138 |
|
|
|
|
|
|
|
|
|
|
|
Average basic shares (in
thousands) |
|
96,435 |
|
96,433 |
|
96,433 |
|
|
96,433 |
|
|
96,727 |
Average diluted shares (in
thousands) |
|
96,465 |
|
96,442 |
|
96,440 |
|
|
96,437 |
|
|
96,750 |
|
|
|
|
|
|
|
|
|
|
|
Note: Taxable equivalent net
interest income |
$ |
40,107 |
|
39,182 |
|
38,166 |
|
|
37,681 |
|
|
38,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
|
(dollars
in thousands) |
(Unaudited) |
|
|
3/31/2021 |
|
|
12/31/2020 |
|
|
9/30/2020 |
|
|
6/30/2020 |
|
|
3/31/2020 |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
45,493 |
|
|
47,196 |
|
|
47,703 |
|
|
44,726 |
|
|
43,362 |
|
Federal funds sold and other
short term investments |
|
1,094,880 |
|
|
1,059,903 |
|
|
908,616 |
|
|
908,110 |
|
|
492,691 |
|
Total cash and cash equivalents |
|
1,140,373 |
|
|
1,107,099 |
|
|
956,319 |
|
|
952,836 |
|
|
536,053 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for
sale: |
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
|
74,465 |
|
|
19,968 |
|
|
29,996 |
|
|
- |
|
|
54,970 |
|
States and political subdivisions |
|
48 |
|
|
103 |
|
|
111 |
|
|
111 |
|
|
112 |
|
Mortgage-backed securities and collateralized mortgage obligations
- residential |
|
348,317 |
|
|
316,158 |
|
|
309,768 |
|
|
331,469 |
|
|
352,067 |
|
Small Business Administration - guaranteed participation
securities |
|
39,232 |
|
|
42,217 |
|
|
44,070 |
|
|
45,998 |
|
|
46,768 |
|
Corporate bonds |
|
64,839 |
|
|
59,939 |
|
|
70,113 |
|
|
54,439 |
|
|
48,564 |
|
Other securities |
|
686 |
|
|
686 |
|
|
685 |
|
|
685 |
|
|
685 |
|
Total securities available for sale |
|
527,587 |
|
|
439,071 |
|
|
454,743 |
|
|
432,702 |
|
|
503,166 |
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities and collateralized mortgage obligations
- residential |
|
12,729 |
|
|
13,824 |
|
|
15,094 |
|
|
16,633 |
|
|
17,720 |
|
Total held to maturity securities |
|
12,729 |
|
|
13,824 |
|
|
15,094 |
|
|
16,633 |
|
|
17,720 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
5,506 |
|
|
5,506 |
|
|
5,506 |
|
|
5,506 |
|
|
9,183 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
217,021 |
|
|
212,492 |
|
|
231,663 |
|
|
231,212 |
|
|
195,805 |
|
Residential mortgage loans |
|
3,807,837 |
|
|
3,780,167 |
|
|
3,724,746 |
|
|
3,681,898 |
|
|
3,627,121 |
|
Home equity line of credit |
|
235,644 |
|
|
242,194 |
|
|
248,320 |
|
|
254,445 |
|
|
265,753 |
|
Installment loans |
|
8,670 |
|
|
9,617 |
|
|
9,826 |
|
|
10,006 |
|
|
10,713 |
|
Loans, net of deferred net
costs |
|
4,269,172 |
|
|
4,244,470 |
|
|
4,214,555 |
|
|
4,177,561 |
|
|
4,099,392 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Allowance for loan
losses |
|
49,991 |
|
|
49,595 |
|
|
49,123 |
|
|
48,144 |
|
|
46,155 |
|
Net loans |
|
4,219,181 |
|
|
4,194,875 |
|
|
4,165,432 |
|
|
4,129,417 |
|
|
4,053,237 |
|
|
|
|
|
|
|
|
|
|
|
|
Bank premises and equipment,
net |
|
34,012 |
|
|
34,412 |
|
|
34,417 |
|
|
34,042 |
|
|
34,428 |
|
Operating lease right-of-use
assets |
|
46,614 |
|
|
47,885 |
|
|
47,174 |
|
|
48,712 |
|
|
49,955 |
|
Other assets |
|
60,455 |
|
|
59,124 |
|
|
57,244 |
|
|
57,155 |
|
|
52,905 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,046,457 |
|
|
5,901,796 |
|
|
5,735,929 |
|
|
5,677,003 |
|
|
5,256,647 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
718,343 |
|
|
652,756 |
|
|
635,345 |
|
|
612,960 |
|
|
480,255 |
|
Interest-bearing checking |
|
1,141,595 |
|
|
1,086,558 |
|
|
1,024,290 |
|
|
1,001,592 |
|
|
895,254 |
|
Savings accounts |
|
1,362,141 |
|
|
1,285,501 |
|
|
1,235,259 |
|
|
1,191,682 |
|
|
1,122,116 |
|
Money market deposit accounts |
|
719,580 |
|
|
716,005 |
|
|
699,132 |
|
|
666,304 |
|
|
617,198 |
|
Time deposits |
|
1,231,263 |
|
|
1,296,373 |
|
|
1,305,024 |
|
|
1,392,769 |
|
|
1,367,005 |
|
Total deposits |
|
5,172,922 |
|
|
5,037,193 |
|
|
4,899,050 |
|
|
4,865,307 |
|
|
4,481,828 |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
229,950 |
|
|
214,755 |
|
|
193,455 |
|
|
177,278 |
|
|
148,090 |
|
Operating lease
liabilities |
|
51,449 |
|
|
52,784 |
|
|
52,125 |
|
|
53,710 |
|
|
54,998 |
|
Accrued expenses and other
liabilities |
|
21,105 |
|
|
28,903 |
|
|
30,771 |
|
|
27,287 |
|
|
23,546 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
5,475,426 |
|
|
5,333,635 |
|
|
5,175,401 |
|
|
5,123,582 |
|
|
4,708,462 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
|
|
|
Capital stock |
|
100,218 |
|
|
100,205 |
|
|
100,205 |
|
|
100,205 |
|
|
100,205 |
|
Surplus |
|
176,500 |
|
|
176,442 |
|
|
176,441 |
|
|
176,437 |
|
|
176,431 |
|
Undivided profits |
|
321,486 |
|
|
313,974 |
|
|
306,741 |
|
|
299,239 |
|
|
294,553 |
|
Accumulated other
comprehensive income, net of tax |
|
7,268 |
|
|
11,936 |
|
|
11,537 |
|
|
11,936 |
|
|
11,392 |
|
Treasury stock at cost |
|
(34,441 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
571,031 |
|
|
568,161 |
|
|
560,528 |
|
|
553,421 |
|
|
548,185 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
6,046,457 |
|
|
5,901,796 |
|
|
5,735,929 |
|
|
5,677,003 |
|
|
5,256,647 |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares (in
thousands) |
|
96,440 |
|
|
96,433 |
|
|
96,433 |
|
|
96,433 |
|
|
96,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
|
|
(dollars
in thousands) |
(Unaudited) |
|
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
|
Nonperforming
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other
states* |
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
Commercial |
$ |
125 |
|
452 |
|
491 |
|
571 |
|
630 |
|
Real estate mortgage - 1 to 4 family |
|
19,826 |
|
19,379 |
|
19,977 |
|
20,215 |
|
18,570 |
|
Installment |
|
32 |
|
43 |
|
49 |
|
6 |
|
24 |
|
Total non-accrual loans |
|
19,983 |
|
19,874 |
|
20,517 |
|
20,792 |
|
19,224 |
|
Other nonperforming real
estate mortgages - 1 to 4 family |
|
22 |
|
23 |
|
25 |
|
26 |
|
27 |
|
Total nonperforming loans |
|
20,005 |
|
19,897 |
|
20,542 |
|
20,818 |
|
19,251 |
|
Other real estate owned |
|
420 |
|
541 |
|
423 |
|
830 |
|
1,284 |
|
Total nonperforming
assets |
$ |
20,425 |
|
20,438 |
|
20,965 |
|
21,648 |
|
20,535 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1 to 4 family |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
Installment |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total non-accrual loans |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
Other nonperforming real
estate mortgages - 1 to 4 family |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming loans |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
Other real estate owned |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming
assets |
$ |
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
1,492 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
Commercial |
$ |
125 |
|
452 |
|
491 |
|
571 |
|
630 |
|
Real estate mortgage - 1 to 4 family |
|
21,452 |
|
20,566 |
|
21,231 |
|
21,326 |
|
20,062 |
|
Installment |
|
32 |
|
43 |
|
49 |
|
6 |
|
24 |
|
Total non-accrual loans |
|
21,609 |
|
21,061 |
|
21,771 |
|
21,903 |
|
20,716 |
|
Other nonperforming real
estate mortgages - 1 to 4 family |
|
22 |
|
23 |
|
25 |
|
26 |
|
27 |
|
Total nonperforming loans |
|
21,631 |
|
21,084 |
|
21,796 |
|
21,929 |
|
20,743 |
|
Other real estate owned |
|
420 |
|
541 |
|
423 |
|
830 |
|
1,284 |
|
Total nonperforming
assets |
$ |
22,051 |
|
21,625 |
|
22,219 |
|
22,759 |
|
22,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net
(Recoveries) Chargeoffs |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Commercial |
$ |
(32 |
) |
32 |
|
(1 |
) |
(6 |
) |
1 |
|
Real estate mortgage - 1 to 4 family |
|
(2 |
) |
(27 |
) |
4 |
|
(27 |
) |
140 |
|
Installment |
|
(14 |
) |
109 |
|
18 |
|
44 |
|
4 |
|
Total net (recoveries) chargeoffs |
$ |
(48 |
) |
114 |
|
21 |
|
11 |
|
145 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1 to 4 family |
|
- |
|
(1 |
) |
- |
|
- |
|
(2 |
) |
Installment |
|
2 |
|
15 |
|
- |
|
- |
|
19 |
|
Total net (recoveries) chargeoffs |
$ |
2 |
|
14 |
|
- |
|
- |
|
17 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Commercial |
$ |
(32 |
) |
32 |
|
(1 |
) |
(6 |
) |
1 |
|
Real estate mortgage - 1 to 4 family |
|
(2 |
) |
(28 |
) |
4 |
|
(27 |
) |
138 |
|
Installment |
|
(12 |
) |
124 |
|
18 |
|
44 |
|
23 |
|
Total net (recoveries) chargeoffs |
$ |
(46 |
) |
128 |
|
21 |
|
11 |
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans
(1) |
$ |
21,631 |
|
21,084 |
|
21,796 |
|
21,929 |
|
20,743 |
|
Total nonperforming assets
(1) |
|
22,051 |
|
21,625 |
|
22,219 |
|
22,759 |
|
22,027 |
|
Total net (recoveries)
chargeoffs (2) |
|
(46 |
) |
128 |
|
21 |
|
11 |
|
162 |
|
|
|
|
|
|
|
|
Allowance for loan losses
(1) |
|
49,991 |
|
49,595 |
|
49,123 |
|
48,144 |
|
46,155 |
|
|
|
|
|
|
|
|
Nonperforming loans to total
loans |
|
0.51 |
% |
0.50 |
% |
0.52 |
% |
0.52 |
% |
0.51 |
% |
Nonperforming assets to total
assets |
|
0.36 |
% |
0.37 |
% |
0.39 |
% |
0.40 |
% |
0.42 |
% |
Allowance for loan losses to
total loans |
|
1.17 |
% |
1.17 |
% |
1.17 |
% |
1.15 |
% |
1.13 |
% |
Coverage ratio (1) |
|
231.1 |
% |
235.2 |
% |
225.4 |
% |
219.5 |
% |
222.5 |
% |
Annualized net (recoveries)
chargeoffs to average loans (2) |
|
0.00 |
% |
0.01 |
% |
0.00 |
% |
0.00 |
% |
0.02 |
% |
Allowance for loan losses to
annualized net (recoveries) chargeoffs (2) |
|
N/A |
|
96.9x |
|
584.8x |
|
1094.2x |
|
71.2x |
|
* 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 |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
|
Average |
|
|
Interest |
Average |
|
|
Average |
|
|
Interest |
|
Average |
|
|
|
Balance |
|
|
|
Rate |
|
|
Balance |
|
|
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for
sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
51,649 |
|
|
50 |
0.38 |
% |
$ |
92,369 |
|
|
421 |
|
1.82 |
% |
Mortgage backed securities and collateralized mortgage obligations
- residential |
|
327,614 |
|
|
1,237 |
1.51 |
|
|
371,768 |
|
|
2,113 |
|
2.27 |
|
State and political subdivisions |
|
50 |
|
|
1 |
6.47 |
|
|
114 |
|
|
2 |
|
7.59 |
|
Corporate bonds |
|
63,334 |
|
|
316 |
1.99 |
|
|
28,332 |
|
|
238 |
|
3.36 |
|
Small Business Administration - guaranteed participation
securities |
|
39,582 |
|
|
206 |
2.09 |
|
|
47,418 |
|
|
245 |
|
2.06 |
|
Other |
|
686 |
|
|
6 |
3.50 |
|
|
685 |
|
|
6 |
|
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale |
|
482,915 |
|
|
1,816 |
1.50 |
|
|
540,686 |
|
|
3,025 |
|
2.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other
short-term Investments |
|
1,029,570 |
|
|
270 |
0.11 |
|
|
412,076 |
|
|
1,267 |
|
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized mortgage obligations
- residential |
|
13,273 |
|
|
123 |
3.70 |
|
|
18,144 |
|
|
175 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity securities |
|
13,273 |
|
|
123 |
3.70 |
|
|
18,144 |
|
|
175 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
5,506 |
|
|
69 |
5.01 |
|
|
9,183 |
|
|
82 |
|
3.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
212,781 |
|
|
2,945 |
5.54 |
|
|
198,047 |
|
|
2,542 |
|
5.13 |
|
Residential mortgage
loans |
|
3,789,256 |
|
|
34,852 |
3.69 |
|
|
3,601,728 |
|
|
36,461 |
|
4.05 |
|
Home equity lines of
credit |
|
238,379 |
|
|
2,259 |
3.84 |
|
|
265,461 |
|
|
2,868 |
|
4.35 |
|
Installment loans |
|
8,795 |
|
|
161 |
7.41 |
|
|
10,717 |
|
|
192 |
|
7.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
4,249,211 |
|
|
40,217 |
3.80 |
|
|
4,075,953 |
|
|
42,063 |
|
4.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning assets |
|
5,780,475 |
|
|
42,495 |
2.95 |
|
|
5,056,042 |
|
|
46,612 |
|
3.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
(49,945 |
) |
|
|
|
|
|
(44,520 |
) |
|
|
|
|
Cash & non-interest
earning assets |
|
199,769 |
|
|
|
|
|
|
193,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,930,299 |
|
|
|
|
|
$ |
5,205,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
1,084,572 |
|
|
52 |
0.02 |
% |
$ |
871,153 |
|
|
16 |
|
0.01 |
% |
Money market accounts |
|
725,570 |
|
|
283 |
0.16 |
|
|
614,201 |
|
|
1,096 |
|
0.72 |
|
Savings |
|
1,315,049 |
|
|
159 |
0.05 |
|
|
1,116,558 |
|
|
233 |
|
0.08 |
|
Time deposits |
|
1,261,963 |
|
|
1,666 |
0.54 |
|
|
1,369,914 |
|
|
6,391 |
|
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,387,154 |
|
|
2,160 |
0.20 |
|
|
3,971,826 |
|
|
7,736 |
|
0.78 |
|
Short-term borrowings |
|
223,807 |
|
|
228 |
0.41 |
|
|
153,668 |
|
|
322 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,610,961 |
|
|
2,388 |
0.21 |
|
|
4,125,494 |
|
|
8,058 |
|
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
673,428 |
|
|
|
|
|
|
458,476 |
|
|
|
|
|
Other liabilities |
|
75,143 |
|
|
|
|
|
|
79,003 |
|
|
|
|
|
Shareholders' equity |
|
570,767 |
|
|
|
|
|
|
542,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
5,930,299 |
|
|
|
|
|
$ |
5,205,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, tax
equivalent |
|
|
|
40,107 |
|
|
|
|
|
38,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.74 |
% |
|
|
|
|
2.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (net
interest income to total interest earning assets) |
|
|
|
|
2.78 |
% |
|
|
|
|
3.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
|
|
- |
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
40,107 |
|
|
|
|
|
38,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
|
|
|
|
|
Tangible Equity to
Tangible Assets |
|
|
|
|
Total Assets (GAAP) |
$ |
6,046,457 |
|
5,901,796 |
|
5,256,647 |
|
Less: Intangible assets |
|
553 |
|
553 |
|
553 |
|
Tangible assets (Non-GAAP) |
|
6,045,904 |
|
5,901,243 |
|
5,256,094 |
|
|
|
|
|
|
Equity (GAAP) |
|
571,031 |
|
568,161 |
|
548,185 |
|
Less: Intangible assets |
|
553 |
|
553 |
|
553 |
|
Tangible equity (Non-GAAP) |
|
570,478 |
|
567,608 |
|
547,632 |
|
Tangible Equity to Tangible
Assets (Non-GAAP) |
|
9.44 |
% |
9.62 |
% |
10.42 |
% |
Equity to Assets (GAAP) |
|
9.44 |
% |
9.63 |
% |
10.43 |
% |
|
|
|
|
|
|
|
Three months ended |
Efficiency
Ratio |
|
3/31/2021 |
|
12/31/2020 |
|
3/31/2020 |
|
|
|
|
|
|
Net interest income (fully
taxable equivalent) (Non-GAAP) |
$ |
40,107 |
|
39,182 |
|
38,554 |
|
Non-interest income
(GAAP) |
|
4,428 |
|
4,069 |
|
5,334 |
|
Less: Net gain on securities |
|
- |
|
- |
|
1,155 |
|
Revenue used for efficiency
ratio (Non-GAAP) |
|
44,535 |
|
43,251 |
|
42,733 |
|
|
|
|
|
|
Total noninterest expense
(GAAP) |
|
25,335 |
|
24,830 |
|
24,268 |
|
Less: Other real estate expense (income), net |
|
239 |
|
45 |
|
194 |
|
Expense used for efficiency
ratio (Non-GAAP) |
|
25,096 |
|
24,785 |
|
24,074 |
|
|
|
|
|
|
Efficiency Ratio |
|
56.35 |
% |
57.31 |
% |
56.34 |
% |
|
|
|
|
|
|
|
|
Subsidiary: Trustco Bank
Contact: |
|
Robert LeonardExecutive Vice President andChief Risk Officer(518)
381-3693 |
|
|
|
TrustCo Bank Corporation... (NASDAQ:TRST)
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