TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second
quarter 2021 net income of $14.4 million or $0.748 diluted earnings
per share, compared to net income of $11.3 million or $0.584
diluted earnings per share for the second quarter 2020; and net
income of $28.5 million or $1.478 diluted earnings per share for
the six months ended June 30, 2021, compared to net income of $24.6
million or $1.272 diluted earnings per share for the six months
ended June 30, 2020. For all periods presented, share
and per share information has been adjusted for the 1 for 5 reverse
stock split which occurred on May 28, 2021.
SummaryRobert J. McCormick,
Chairman, President and Chief Executive Officer noted, “The people
who make up the team at Trustco Bank are second to none. We have a
deep and diverse talent pool that enables us to focus on short,
medium, and long-term objectives all at the same time. The
financial results announced today demonstrate the success of these
multifaceted efforts. Working our way through and out of the
COVID-19 pandemic, we were true to our “Home Town Bank” motto and
helped many people in the communities we serve, while
simultaneously achieving meaningful shareholder value and
return.”
We not only continued without interruption our
long history of paying a meaningful dividend, we also won
shareholder approval of a reverse stock split that we believe will
improve the company’s position in the market by making our stock
attractive to a wider audience. At the same time, we also supported
food banks, renewed our commitments to distressed neighborhoods,
invested in affordable housing programs, aided educational
programs, and encouraged savings initiatives. We also continued to
assist consumer and commercial customers as they worked their way
out of the hardships of the past year and are happy to report that
virtually all Trustco Bank borrowers who received pandemic relief
are making payments as agreed.
Our team is never one to rest on its successes.
Our entire management team, from those leading our branches to the
heads of our internal departments, are focused on generating new
business by reaching an ever-expanding consumer audience with our
industry-leading residential mortgage products and developing new
relationships with commercial customers who share our
forward-looking and success-oriented vision. As always, we pursue
these objectives with our trademark efficiency.
Details
Average loans were up $158.6 million or 3.8% in
the second quarter 2021 over the same period in 2020. Average
residential loans, our primary lending focus, were up $193.9
million, or 5.3%, in the second quarter 2021 over the same period
in 2020. As of June 30, 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 343
loans totaling $23 million in the first half of 2021. As of June
30, 2021, 526 PPP loans totaling $32 million remain outstanding.
Average deposits were up $507.8 million or 10.8% for the second
quarter 2021 over the same period a year earlier. The increase in
deposits was the result of a $701.8 million or 21.2% 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 $194.1
million or 13.9%, for the second quarter 2021 over the same period
in 2020. Within the core deposits, checking balances were up $399.5
million or 26.6% (including interest bearing and non-interest
bearing checking balances), money market balances were up $87.5
million or 13.6%, and savings balances were up $214.8 million or
18.4%. 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 0.17% in the second quarter 2021 from 0.64% in the
second quarter 2020. A significant portion of our CD portfolio
(time deposits) repriced during the last year, which resulted in
lower rates as a result of the ongoing market conditions. The net
interest margin for the second quarter 2021 was 2.70%, down 11
basis points from 2.81% in the second quarter of 2020. This was
primarily due to the decrease in market rates 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 $24.3 million or
4.4% in the second quarter of 2021 compared to the same period in
2020. Return on average assets and return on average equity for the
second quarter 2021 were 0.95% and 10.05%, respectively, compared
to 0.82% and 8.21% for the second quarter 2020. Improving
efficiencies to reduce costs continues to remain a key area of
focus. As a result, full time equivalent employees
decreased from the prior year and quarter partially due to a
strategic realignment and the impact of COVID-19 on the labor
market. The Bank also purchased 20 thousand shares of stock under
the announced Repurchase Plan. Additionally, as previously
announced, the reverse split of the Company’s Common Stock at a
ratio of 1 for 5 was implemented on the Nasdaq Global Select Market
on May 28, 2021. All prior period share and per share information,
and common stock and surplus amounts have been split adjusted. The
board of directors believes that the Reverse Stock Split will
likely result in a higher per share trading price, which is
intended to generate greater investor interest in TrustCo and
improve the marketability of the shares to a broader range of
investors. The board of directors also believes that the Reverse
Stock Split will result in a number of our shares of outstanding
common stock that is similar to the number of outstanding shares of
common stock of comparable financial institutions.
Asset quality and loan loss reserve measures
have stayed consistent. Nonperforming loans (NPLs) were $20.8
million at June 30, 2021, compared to $21.9 million at June 30,
2020. NPLs were 0.48% and 0.52% of total loans at June 30, 2021 and
2020, respectively. The coverage ratio, or allowance for loan
losses to NPLs, was 240.9% at June 30, 2021, compared to 219.5% at
June 30, 2020. Nonperforming assets (NPAs) were $21.1 million at
June 30, 2021, compared to $22.8 million at June 30, 2020. The
ratio of allowance for loan losses to total loans was 1.15% as of
both June 30, 2021 and 2020. The allowance for loan losses was
$50.2 million at June 30, 2021, compared to $48.1 million at June
30, 2020. There was no provision for loan losses for the second
quarter 2021 consistent with improved asset quality trends and
economic conditions. Provision for loan losses for the second
quarter of 2020 was $2 million driven by the beginning of the
uncertainty in the economic environment resulting from the COVID-19
pandemic. 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 second quarter 2021 were
$164 thousand versus net chargeoffs in the second quarter 2020 of
$11 thousand. The annualized net (recoveries) chargeoffs ratio was
(0.02)% and 0.00% for the second quarter 2021 and 2020,
respectively.
At June 30, 2021 the equity to asset ratio was
9.45%, compared to 9.75% at June 30, 2020. Book value per share at
June 30, 2021 was $30.00, up 4.6% compared to $28.67 a year
earlier.
TrustCo Bank Corp NY is a $6.1 billion savings
and loan holding company and through its subsidiary, Trustco Bank,
operated 147 offices in New York, New Jersey, Vermont,
Massachusetts, and Florida at June 30, 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 second quarter 2021
results will be held at 9:00 a.m. Eastern Time on July 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 10158543. The call will also be audio webcast at:
https://services.choruscall.com/links/trst210722.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 2021, 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 ability to retain customer products,
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.
Subsidiary: |
Trustco Bank |
|
|
Contact: |
Robert Leonard |
|
Executive Vice President and |
|
Chief Risk Officer |
|
(518) 381-3693 |
|
|
TRUSTCO BANK
CORP NY |
GLENVILLE,
NY |
|
FINANCIAL
HIGHLIGHTS |
|
(dollars in
thousands, except per share data) |
(Unaudited) |
|
|
Three months
ended |
|
|
6/30/2021 |
|
3/31/2021 |
|
6/30/2020 |
Summary of
operations |
|
|
|
|
|
|
Net interest income (TE) |
$ |
40,122 |
|
|
40,107 |
|
|
37,681 |
|
Provision for loan losses |
|
- |
|
|
350 |
|
|
2,000 |
|
Noninterest income |
|
4,688 |
|
|
4,428 |
|
|
3,426 |
|
Noninterest expense |
|
25,440 |
|
|
25,335 |
|
|
23,932 |
|
Net income |
|
14,433 |
|
|
14,083 |
|
|
11,254 |
|
|
|
|
|
|
|
|
Per share
(4) |
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
- Basic |
$ |
0.749 |
|
|
0.730 |
|
|
0.584 |
|
- Diluted |
|
0.748 |
|
|
0.730 |
|
|
0.584 |
|
Cash dividends |
|
0.341 |
|
|
0.341 |
|
|
0.341 |
|
Book value at period end |
|
30.00 |
|
|
29.60 |
|
|
28.67 |
|
Market price at period end |
|
34.38 |
|
|
36.85 |
|
|
31.65 |
|
|
|
|
|
|
|
|
At period
end |
|
|
|
|
|
|
Full time equivalent employees |
|
769 |
|
|
820 |
|
|
806 |
|
Full service banking offices |
|
147 |
|
|
148 |
|
|
148 |
|
|
|
|
|
|
|
|
Performance
ratios |
|
|
|
|
|
|
Return on average assets |
|
0.95 |
% |
|
0.96 |
|
|
0.82 |
|
Return on average equity |
|
10.05 |
|
|
10.01 |
|
|
8.21 |
|
Efficiency (1) |
|
56.91 |
|
|
56.35 |
|
|
58.30 |
|
Net interest spread (TE) |
|
2.66 |
|
|
2.74 |
|
|
2.69 |
|
Net interest margin (TE) |
|
2.70 |
|
|
2.78 |
|
|
2.81 |
|
Dividend payout ratio |
|
45.51 |
|
|
46.65 |
|
|
58.37 |
|
|
|
|
|
|
|
|
Capital
ratios at period end |
|
|
|
|
|
|
Consolidated tangible equity to tangible assets
(2) |
|
9.44 |
% |
|
9.44 |
|
|
9.74 |
|
Consolidated equity to assets |
|
9.45 |
% |
|
9.44 |
|
|
9.75 |
|
|
|
|
|
|
|
|
Asset
quality analysis at period end |
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.48 |
|
|
0.51 |
|
|
0.52 |
|
Nonperforming assets to total assets |
|
0.34 |
|
|
0.36 |
|
|
0.40 |
|
Allowance for loan losses to total loans |
|
1.15 |
|
|
1.17 |
|
|
1.15 |
|
Coverage ratio (3) |
|
2.4x |
|
|
2.3x |
|
|
2.2x |
|
|
|
|
|
|
|
|
(1) Non-GAAP measure;
calculated as noninterest expense (excluding ORE income/expense)
divided by taxable equivalent net interest income plus
noninterest income. See Non-GAAP Financial Measures
Reconciliation. |
(2) Non-GAAP measure;
calculated as total equity less $553 of intangible assets divided
by total assets less $553 of intangible assets. See Non-GAAP
Financial Measures Reconciliation. |
(3) Calculated as
allowance for loan losses divided by total nonperforming
loans. |
(4) All periods presented have been adjusted for the 1 for 5
reverse stock split which occurred on May 28, 2021. |
|
|
|
TE = Taxable
equivalent |
FINANCIAL HIGHLIGHTS, Continued |
|
(dollars in thousands, except per share data) |
(Unaudited) |
|
|
Six months
ended |
|
|
06/30/21 |
|
06/30/20 |
Summary of
operations |
|
|
|
|
Net interest income (TE) |
$ |
80,229 |
|
|
76,235 |
|
Provision for loan losses |
|
350 |
|
|
4,000 |
|
Net gain on securities transactions |
|
- |
|
|
1,155 |
|
Noninterest income, excluding net gain on
securities transactions |
|
9,116 |
|
|
7,605 |
|
Noninterest expense |
|
50,775 |
|
|
48,200 |
|
Net income |
|
28,516 |
|
|
24,567 |
|
|
|
|
|
|
Per share
(2) |
|
|
|
|
Net income per share: |
|
|
|
|
- Basic |
$ |
1.479 |
|
|
1.272 |
|
- Diluted |
|
1.478 |
|
|
1.272 |
|
Cash dividends |
|
0.681 |
|
|
0.681 |
|
Book value at period end |
|
30.00 |
|
|
28.67 |
|
Market price at period end |
|
34.38 |
|
|
31.65 |
|
|
|
|
|
|
Performance
ratios |
|
|
|
|
Return on average assets |
|
0.96 |
|
|
0.92 |
|
Return on average equity |
|
10.03 |
|
|
9.04 |
|
Efficiency (1) |
|
56.63 |
|
|
57.30 |
|
Net interest spread (TE) |
|
2.70 |
|
|
2.80 |
|
Net interest margin (TE) |
|
2.74 |
|
|
2.93 |
|
Dividend payout ratio |
|
46.07 |
|
|
53.52 |
|
|
|
|
|
|
(1) Calculated as noninterest expense (excluding ORE
income/expense) divided by taxable equivalent net interest
income plus noninterest income. See Non-GAAP Financial
Measures Reconciliation. |
(2) All periods presented have been adjusted for the 1 for 5
reverse stock split which occurred on May 28, 2021. |
|
|
|
|
|
TE = Taxable equivalent. |
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
39,808 |
|
|
40,217 |
|
|
40,906 |
|
|
41,330 |
|
|
41,665 |
|
Interest and dividends on securities available
for sale: |
|
|
|
|
|
|
|
|
|
|
U. S. government
sponsored enterprises |
|
97 |
|
|
50 |
|
|
27 |
|
|
14 |
|
|
106 |
|
State and political
subdivisions |
|
- |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
2 |
|
Mortgage-backed
securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
obligations
- residential |
|
1,167 |
|
|
1,237 |
|
|
1,172 |
|
|
1,319 |
|
|
1,527 |
|
Corporate bonds |
|
323 |
|
|
316 |
|
|
349 |
|
|
646 |
|
|
488 |
|
Small Business
Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
participation
securities |
|
193 |
|
|
206 |
|
|
212 |
|
|
216 |
|
|
229 |
|
Other securities |
|
5 |
|
|
6 |
|
|
7 |
|
|
5 |
|
|
5 |
|
Total interest and dividends on securities
available for sale |
|
1,785 |
|
|
1,816 |
|
|
1,769 |
|
|
2,201 |
|
|
2,357 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
held to maturity securities: |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities and collateralized mortgage |
|
|
|
|
|
|
|
|
|
|
obligations
- residential |
|
111 |
|
|
123 |
|
|
129 |
|
|
138 |
|
|
162 |
|
Total interest on held to maturity
securities |
|
111 |
|
|
123 |
|
|
129 |
|
|
138 |
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
65 |
|
|
69 |
|
|
70 |
|
|
77 |
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
federal funds sold and other short-term investments |
|
286 |
|
|
270 |
|
|
246 |
|
|
242 |
|
|
193 |
|
Total interest income |
|
42,055 |
|
|
42,495 |
|
|
43,120 |
|
|
43,988 |
|
|
44,569 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Interest on deposits: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking |
|
46 |
|
|
52 |
|
|
51 |
|
|
55 |
|
|
26 |
|
Savings |
|
162 |
|
|
159 |
|
|
156 |
|
|
161 |
|
|
166 |
|
Money market deposit
accounts |
|
236 |
|
|
283 |
|
|
447 |
|
|
637 |
|
|
862 |
|
Time deposits |
|
1,261 |
|
|
1,666 |
|
|
3,053 |
|
|
4,749 |
|
|
5,599 |
|
Interest on short-term borrowings |
|
228 |
|
|
228 |
|
|
232 |
|
|
221 |
|
|
235 |
|
Total interest expense |
|
1,933 |
|
|
2,388 |
|
|
3,939 |
|
|
5,823 |
|
|
6,888 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
40,122 |
|
|
40,107 |
|
|
39,181 |
|
|
38,165 |
|
|
37,681 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Provision for loan losses |
|
- |
|
|
350 |
|
|
600 |
|
|
1,000 |
|
|
2,000 |
|
Net interest income after provision for loan
losses |
|
40,122 |
|
|
39,757 |
|
|
38,581 |
|
|
37,165 |
|
|
35,681 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Trustco
Financial Services income |
|
1,999 |
|
|
2,035 |
|
|
1,527 |
|
|
1,784 |
|
|
1,368 |
|
Fees for services to customers |
|
2,486 |
|
|
2,204 |
|
|
2,365 |
|
|
2,292 |
|
|
1,807 |
|
Other |
|
203 |
|
|
189 |
|
|
177 |
|
|
265 |
|
|
251 |
|
Total noninterest income |
|
4,688 |
|
|
4,428 |
|
|
4,069 |
|
|
4,341 |
|
|
3,426 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
12,403 |
|
|
12,425 |
|
|
11,727 |
|
|
10,899 |
|
|
11,648 |
|
Net occupancy expense |
|
4,328 |
|
|
4,586 |
|
|
4,551 |
|
|
4,277 |
|
|
4,385 |
|
Equipment expense |
|
1,600 |
|
|
1,631 |
|
|
1,621 |
|
|
1,607 |
|
|
1,606 |
|
Professional services |
|
1,614 |
|
|
1,432 |
|
|
1,644 |
|
|
1,311 |
|
|
1,182 |
|
Outsourced services |
|
2,169 |
|
|
2,250 |
|
|
1,925 |
|
|
1,875 |
|
|
1,875 |
|
Advertising expense |
|
549 |
|
|
354 |
|
|
527 |
|
|
305 |
|
|
601 |
|
FDIC and other insurance |
|
777 |
|
|
707 |
|
|
657 |
|
|
660 |
|
|
609 |
|
Other real estate (income) expense, net |
|
(60 |
) |
|
239 |
|
|
45 |
|
|
(115 |
) |
|
(32 |
) |
Other |
|
2,060 |
|
|
1,711 |
|
|
2,133 |
|
|
1,855 |
|
|
2,058 |
|
Total noninterest expenses |
|
25,440 |
|
|
25,335 |
|
|
24,830 |
|
|
22,674 |
|
|
23,932 |
|
|
|
|
|
|
|
|
|
|
|
|
Income
before taxes |
|
19,370 |
|
|
18,850 |
|
|
17,820 |
|
|
18,832 |
|
|
15,175 |
|
Income
taxes |
|
4,937 |
|
|
4,767 |
|
|
4,006 |
|
|
4,761 |
|
|
3,921 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
14,433 |
|
|
14,083 |
|
|
13,814 |
|
|
14,071 |
|
|
11,254 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share (1): |
|
|
|
|
|
|
|
|
|
|
- Basic |
$ |
0.749 |
|
|
0.730 |
|
|
0.716 |
|
|
0.730 |
|
|
0.584 |
|
|
|
|
|
|
|
|
|
|
|
|
- Diluted |
|
0.748 |
|
|
0.730 |
|
|
0.716 |
|
|
0.730 |
|
|
0.584 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic shares (in thousands) (1) |
|
19,281 |
|
|
19,287 |
|
|
19,287 |
|
|
19,287 |
|
|
19,287 |
|
Average
diluted shares (in thousands) (1) |
|
19,290 |
|
|
19,293 |
|
|
19,288 |
|
|
19,288 |
|
|
19,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Taxable equivalent net interest income |
$ |
40,122 |
|
|
40,107 |
|
|
39,182 |
|
|
38,166 |
|
|
37,681 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) All periods presented have been adjusted for the 1 for 5
reverse stock split which occurred on May 28, 2021. |
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME, Continued |
|
(dollars in thousands, except per share data) |
(Unaudited) |
|
|
Six months
ended |
|
|
06/30/21 |
|
06/30/20 |
Interest and
dividend income: |
|
|
|
|
Interest and fees on loans |
$ |
80,025 |
|
|
83,728 |
|
Interest and dividends on securities available for
sale: |
|
|
|
|
U. S. government sponsored
enterprises |
|
147 |
|
|
527 |
|
State and political subdivisions |
|
1 |
|
|
3 |
|
Mortgage-backed securities and
collateralized mortgage |
|
|
|
|
obligations -
residential |
|
2,404 |
|
|
3,640 |
|
Corporate bonds |
|
639 |
|
|
726 |
|
Small Business Administration -
guaranteed |
|
|
|
|
participation
securities |
|
399 |
|
|
474 |
|
Other securities |
|
11 |
|
|
11 |
|
Total interest and
dividends on securities available for sale |
|
3,601 |
|
|
5,381 |
|
|
|
|
|
|
Interest on
held to maturity securities: |
|
|
|
|
Mortgage-backed
securities-residential |
|
234 |
|
|
337 |
|
Total interest on held to maturity
securities |
|
234 |
|
|
337 |
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
134 |
|
|
274 |
|
|
|
|
|
|
Interest on
federal funds sold and other short-term investments |
|
556 |
|
|
1,460 |
|
Total interest income |
|
84,550 |
|
|
91,180 |
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
Interest on deposits: |
|
|
|
|
Interest-bearing
checking |
|
98 |
|
|
42 |
|
Savings |
|
321 |
|
|
399 |
|
Money market deposit
accounts |
|
519 |
|
|
1,958 |
|
Time deposits |
|
2,927 |
|
|
11,990 |
|
Interest on short-term borrowings |
|
456 |
|
|
557 |
|
Total interest expense |
|
4,321 |
|
|
14,946 |
|
|
|
|
|
|
Net interest income |
|
80,229 |
|
|
76,234 |
|
|
|
|
|
|
Less: Provision for loan losses |
|
350 |
|
|
4,000 |
|
Net interest income after provision for loan
losses |
|
79,879 |
|
|
72,234 |
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
Trustco Financial Services income |
|
4,034 |
|
|
2,968 |
|
Fees for services to customers |
|
4,690 |
|
|
4,122 |
|
Net gain on securities transactions |
|
- |
|
|
1,155 |
|
Other |
|
392 |
|
|
515 |
|
Total noninterest income |
|
9,116 |
|
|
8,760 |
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
Salaries and employee benefits |
|
24,828 |
|
|
23,021 |
|
Net occupancy expense |
|
8,914 |
|
|
8,691 |
|
Equipment expense |
|
3,231 |
|
|
3,408 |
|
Professional services |
|
3,046 |
|
|
2,663 |
|
Outsourced services |
|
4,419 |
|
|
3,950 |
|
Advertising expense |
|
903 |
|
|
1,089 |
|
FDIC and other insurance |
|
1,484 |
|
|
903 |
|
Other real estate expense, net |
|
179 |
|
|
162 |
|
Other |
|
3,771 |
|
|
4,313 |
|
Total noninterest expenses |
|
50,775 |
|
|
48,200 |
|
|
|
|
|
|
Income
before taxes |
|
38,220 |
|
|
32,794 |
|
Income
taxes |
|
9,704 |
|
|
8,227 |
|
|
|
|
|
|
Net
income |
$ |
28,516 |
|
|
24,567 |
|
|
|
|
|
|
Net income
per common share (1): |
|
|
|
|
- Basic |
$ |
1.479 |
|
|
1.272 |
|
|
|
|
|
|
- Diluted |
|
1.478 |
|
|
1.272 |
|
|
|
|
|
|
Average
basic shares (in thousands) (1) |
|
19,284 |
|
|
19,316 |
|
Average
diluted shares (in thousands) (1) |
|
19,292 |
|
|
19,319 |
|
|
|
|
|
|
Note:
Taxable equivalent net interest income |
$ |
80,229 |
|
|
76,235 |
|
|
|
|
|
|
(1) All periods presented have been adjusted for the 1 for 5
reverse stock split which occurred on May 28, 2021. |
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
(dollars in
thousands) |
(Unaudited) |
|
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
47,766 |
|
|
45,493 |
|
|
47,196 |
|
|
47,703 |
|
|
44,726 |
|
Federal
funds sold and other short term investments |
|
1,134,622 |
|
|
1,094,880 |
|
|
1,059,903 |
|
|
908,616 |
|
|
908,110 |
|
Total cash and cash
equivalents |
|
1,182,388 |
|
|
1,140,373 |
|
|
1,107,099 |
|
|
956,319 |
|
|
952,836 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available for sale: |
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
|
74,579 |
|
|
74,465 |
|
|
19,968 |
|
|
29,996 |
|
|
- |
|
States and political subdivisions |
|
48 |
|
|
48 |
|
|
103 |
|
|
111 |
|
|
111 |
|
Mortgage-backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
315,656 |
|
|
348,317 |
|
|
316,158 |
|
|
309,768 |
|
|
331,469 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
participation securities |
|
37,199 |
|
|
39,232 |
|
|
42,217 |
|
|
44,070 |
|
|
45,998 |
|
Corporate bonds |
|
54,647 |
|
|
64,839 |
|
|
59,939 |
|
|
70,113 |
|
|
54,439 |
|
Other securities |
|
686 |
|
|
686 |
|
|
686 |
|
|
685 |
|
|
685 |
|
Total securities
available for sale |
|
482,815 |
|
|
527,587 |
|
|
439,071 |
|
|
454,743 |
|
|
432,702 |
|
|
|
|
|
|
|
|
|
|
|
|
Held to
maturity securities: |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
obligations-residential |
|
11,665 |
|
|
12,729 |
|
|
13,824 |
|
|
15,094 |
|
|
16,633 |
|
Total held to
maturity securities |
|
11,665 |
|
|
12,729 |
|
|
13,824 |
|
|
15,094 |
|
|
16,633 |
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
5,604 |
|
|
5,506 |
|
|
5,506 |
|
|
5,506 |
|
|
5,506 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
214,164 |
|
|
217,021 |
|
|
212,492 |
|
|
231,663 |
|
|
231,212 |
|
Residential mortgage loans |
|
3,892,351 |
|
|
3,807,837 |
|
|
3,780,167 |
|
|
3,724,746 |
|
|
3,681,898 |
|
Home equity line of credit |
|
234,214 |
|
|
235,644 |
|
|
242,194 |
|
|
248,320 |
|
|
254,445 |
|
Installment loans |
|
8,638 |
|
|
8,670 |
|
|
9,617 |
|
|
9,826 |
|
|
10,006 |
|
Loans, net
of deferred net costs |
|
4,349,367 |
|
|
4,269,172 |
|
|
4,244,470 |
|
|
4,214,555 |
|
|
4,177,561 |
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Allowance for loan losses |
|
50,155 |
|
|
49,991 |
|
|
49,595 |
|
|
49,123 |
|
|
48,144 |
|
Net loans |
|
4,299,212 |
|
|
4,219,181 |
|
|
4,194,875 |
|
|
4,165,432 |
|
|
4,129,417 |
|
|
|
|
|
|
|
|
|
|
|
|
Bank
premises and equipment, net |
|
33,691 |
|
|
34,012 |
|
|
34,412 |
|
|
34,417 |
|
|
34,042 |
|
Operating
lease right-of-use assets |
|
45,825 |
|
|
46,614 |
|
|
47,885 |
|
|
47,174 |
|
|
48,712 |
|
Other
assets |
|
61,378 |
|
|
60,455 |
|
|
59,124 |
|
|
57,244 |
|
|
57,155 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,122,578 |
|
|
6,046,457 |
|
|
5,901,796 |
|
|
5,735,929 |
|
|
5,677,003 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
765,193 |
|
|
718,343 |
|
|
652,756 |
|
|
635,345 |
|
|
612,960 |
|
Interest-bearing checking |
|
1,152,901 |
|
|
1,141,595 |
|
|
1,086,558 |
|
|
1,024,290 |
|
|
1,001,592 |
|
Savings accounts |
|
1,409,556 |
|
|
1,362,141 |
|
|
1,285,501 |
|
|
1,235,259 |
|
|
1,191,682 |
|
Money market deposit accounts |
|
732,963 |
|
|
719,580 |
|
|
716,005 |
|
|
699,132 |
|
|
666,304 |
|
Time deposits |
|
1,169,907 |
|
|
1,231,263 |
|
|
1,296,373 |
|
|
1,305,024 |
|
|
1,392,769 |
|
Total deposits |
|
5,230,520 |
|
|
5,172,922 |
|
|
5,037,193 |
|
|
4,899,050 |
|
|
4,865,307 |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
237,791 |
|
|
229,950 |
|
|
214,755 |
|
|
193,455 |
|
|
177,278 |
|
Operating
lease liabilities |
|
50,586 |
|
|
51,449 |
|
|
52,784 |
|
|
52,125 |
|
|
53,710 |
|
Accrued
expenses and other liabilities |
|
25,088 |
|
|
21,105 |
|
|
28,903 |
|
|
30,771 |
|
|
27,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
5,543,985 |
|
|
5,475,426 |
|
|
5,333,635 |
|
|
5,175,401 |
|
|
5,123,582 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
Capital
stock (1) |
|
20,041 |
|
|
20,044 |
|
|
20,041 |
|
|
20,041 |
|
|
20,041 |
|
Surplus
(1) |
|
256,536 |
|
|
256,674 |
|
|
256,606 |
|
|
256,605 |
|
|
256,601 |
|
Undivided
profits |
|
329,350 |
|
|
321,486 |
|
|
313,974 |
|
|
306,741 |
|
|
299,239 |
|
Accumulated
other comprehensive income, net of tax |
|
7,840 |
|
|
7,268 |
|
|
11,936 |
|
|
11,537 |
|
|
11,936 |
|
Treasury
stock at cost |
|
(35,174 |
) |
|
(34,441 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
(34,396 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
|
578,593 |
|
|
571,031 |
|
|
568,161 |
|
|
560,528 |
|
|
553,421 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity |
$ |
6,122,578 |
|
|
6,046,457 |
|
|
5,901,796 |
|
|
5,735,929 |
|
|
5,677,003 |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding
shares (in thousands) (1) |
|
19,265 |
|
|
19,288 |
|
|
19,287 |
|
|
19,287 |
|
|
19,287 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) All periods presented have been adjusted for the 1 for 5
reverse stock split which occurred on May 28, 2021. |
|
|
|
|
|
|
NONPERFORMING
ASSETS |
|
|
|
|
|
|
|
(dollars in
thousands) |
(Unaudited) |
|
|
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
6/30/2020 |
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
150 |
|
125 |
|
452 |
|
491 |
|
571 |
|
Real estate mortgage - 1
to 4 family |
|
18,466 |
|
19,826 |
|
19,379 |
|
19,977 |
|
20,215 |
|
Installment |
|
43 |
|
32 |
|
43 |
|
49 |
|
6 |
|
Total non-accrual loans |
|
18,659 |
|
19,983 |
|
19,874 |
|
20,517 |
|
20,792 |
|
Other nonperforming real estate mortgages - 1 to
4 family |
|
20 |
|
22 |
|
23 |
|
25 |
|
26 |
|
Total nonperforming loans |
|
18,679 |
|
20,005 |
|
19,897 |
|
20,542 |
|
20,818 |
|
Other real estate owned |
|
251 |
|
420 |
|
541 |
|
423 |
|
830 |
|
Total nonperforming assets |
$ |
18,930 |
|
20,425 |
|
20,438 |
|
20,965 |
|
21,648 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1
to 4 family |
|
2,142 |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
Installment |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total non-accrual loans |
|
2,142 |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
Other nonperforming real estate mortgages - 1 to
4 family |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming loans |
|
2,142 |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
Other real estate owned |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total nonperforming assets |
$ |
2,142 |
|
1,626 |
|
1,187 |
|
1,254 |
|
1,111 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
|
Commercial |
$ |
150 |
|
125 |
|
452 |
|
491 |
|
571 |
|
Real estate mortgage - 1
to 4 family |
|
20,608 |
|
21,452 |
|
20,566 |
|
21,231 |
|
21,326 |
|
Installment |
|
43 |
|
32 |
|
43 |
|
49 |
|
6 |
|
Total non-accrual loans |
|
20,801 |
|
21,609 |
|
21,061 |
|
21,771 |
|
21,903 |
|
Other nonperforming real estate mortgages - 1 to
4 family |
|
20 |
|
22 |
|
23 |
|
25 |
|
26 |
|
Total nonperforming loans |
|
20,821 |
|
21,631 |
|
21,084 |
|
21,796 |
|
21,929 |
|
Other real estate owned |
|
251 |
|
420 |
|
541 |
|
423 |
|
830 |
|
Total nonperforming assets |
$ |
21,072 |
|
22,051 |
|
21,625 |
|
22,219 |
|
22,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net (Recoveries) Chargeoffs |
|
|
|
|
|
|
|
|
|
|
|
|
|
New York and other states* |
|
|
|
|
|
|
Commercial |
$ |
- |
|
(32 |
) |
32 |
|
(1 |
) |
(6 |
) |
Real estate mortgage - 1 to 4 family |
|
(136 |
) |
(2 |
) |
(27 |
) |
4 |
|
(27 |
) |
Installment |
|
(27 |
) |
(14 |
) |
109 |
|
18 |
|
44 |
|
Total net (recoveries)
chargeoffs |
$ |
(163 |
) |
(48 |
) |
114 |
|
21 |
|
11 |
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
Commercial |
$ |
- |
|
- |
|
- |
|
- |
|
- |
|
Real estate mortgage - 1 to 4 family |
|
(1 |
) |
- |
|
(1 |
) |
- |
|
- |
|
Installment |
|
- |
|
2 |
|
15 |
|
- |
|
- |
|
Total net (recoveries)
chargeoffs |
$ |
(1 |
) |
2 |
|
14 |
|
- |
|
- |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Commercial |
$ |
- |
|
(32 |
) |
32 |
|
(1 |
) |
(6 |
) |
Real estate mortgage - 1 to 4 family |
|
(137 |
) |
(2 |
) |
(28 |
) |
4 |
|
(27 |
) |
Installment |
|
(27 |
) |
(12 |
) |
124 |
|
18 |
|
44 |
|
Total net (recoveries)
chargeoffs |
$ |
(164 |
) |
(46 |
) |
128 |
|
21 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming loans (1) |
$ |
20,821 |
|
21,631 |
|
21,084 |
|
21,796 |
|
21,929 |
|
Total
nonperforming assets (1) |
|
21,072 |
|
22,051 |
|
21,625 |
|
22,219 |
|
22,759 |
|
Total net
(recoveries) chargeoffs (2) |
|
(164 |
) |
(46 |
) |
128 |
|
21 |
|
11 |
|
|
|
|
|
|
|
|
Allowance
for loan losses (1) |
|
50,155 |
|
49,991 |
|
49,595 |
|
49,123 |
|
48,144 |
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.48 |
% |
0.51 |
% |
0.50 |
% |
0.52 |
% |
0.52 |
% |
Nonperforming assets to total assets |
|
0.34 |
% |
0.36 |
% |
0.37 |
% |
0.39 |
% |
0.40 |
% |
Allowance
for loan losses to total loans |
|
1.15 |
% |
1.17 |
% |
1.17 |
% |
1.17 |
% |
1.15 |
% |
Coverage
ratio (1) |
|
240.9 |
% |
231.1 |
% |
235.2 |
% |
225.4 |
% |
219.5 |
% |
Annualized
net (recoveries) chargeoffs to average loans (2) |
|
-0.02 |
% |
0.00 |
% |
0.01 |
% |
0.00 |
% |
0.00 |
% |
Allowance
for loan losses to annualized net (recoveries) chargeoffs (2) |
|
N/A |
|
N/A |
|
96.9x |
|
584.8x |
|
1094.2x |
|
|
* 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 |
|
|
|
June 30, 2021 |
|
|
June 30, 2020 |
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
74,971 |
|
|
97 |
0.52 |
% |
$ |
23,291 |
|
|
106 |
|
1.83 |
% |
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
327,332 |
|
|
1,167 |
1.43 |
|
|
333,122 |
|
|
1,527 |
|
1.83 |
|
State and political subdivisions |
|
48 |
|
|
- |
- |
|
|
110 |
|
|
2 |
|
7.90 |
|
Corporate bonds |
|
57,021 |
|
|
323 |
2.27 |
|
|
51,494 |
|
|
488 |
|
3.79 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
|
|
participation securities |
|
36,839 |
|
|
193 |
2.09 |
|
|
45,260 |
|
|
229 |
|
2.03 |
|
Other |
|
686 |
|
|
5 |
2.92 |
|
|
685 |
|
|
5 |
|
2.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
securities available for sale |
|
496,897 |
|
|
1,785 |
1.44 |
|
|
453,962 |
|
|
2,357 |
|
2.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
funds sold and other short-term Investments |
|
1,126,298 |
|
|
286 |
0.10 |
|
|
727,006 |
|
|
193 |
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to
maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
12,179 |
|
|
111 |
3.67 |
|
|
17,199 |
|
|
162 |
|
3.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
held to maturity securities |
|
12,179 |
|
|
111 |
3.67 |
|
|
17,199 |
|
|
162 |
|
3.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
5,598 |
|
|
65 |
4.64 |
|
|
9,332 |
|
|
192 |
|
8.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans |
|
214,912 |
|
|
2,608 |
4.85 |
|
|
223,002 |
|
|
2,610 |
|
4.68 |
|
Residential
mortgage loans |
|
3,847,274 |
|
|
34,836 |
3.62 |
|
|
3,653,342 |
|
|
36,365 |
|
3.98 |
|
Home equity
lines of credit |
|
234,476 |
|
|
2,211 |
3.78 |
|
|
260,029 |
|
|
2,515 |
|
3.89 |
|
Installment
loans |
|
8,349 |
|
|
153 |
7.34 |
|
|
10,044 |
|
|
175 |
|
7.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
of unearned income |
|
4,305,011 |
|
|
39,808 |
3.70 |
|
|
4,146,417 |
|
|
41,665 |
|
4.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest earning assets |
|
5,945,983 |
|
|
42,055 |
2.83 |
|
|
5,353,916 |
|
|
44,569 |
|
3.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
(50,196 |
) |
|
|
|
|
|
(46,832 |
) |
|
|
|
|
Cash &
non-interest earning assets |
|
197,561 |
|
|
|
|
|
|
195,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
6,093,348 |
|
|
|
|
|
$ |
5,502,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
1,149,296 |
|
|
46 |
0.02 |
% |
$ |
953,299 |
|
|
26 |
|
0.01 |
% |
Money market accounts |
|
729,136 |
|
|
236 |
0.13 |
|
|
641,593 |
|
|
862 |
|
0.54 |
|
Savings |
|
1,382,604 |
|
|
162 |
0.05 |
|
|
1,167,844 |
|
|
166 |
|
0.06 |
|
Time deposits |
|
1,198,064 |
|
|
1,261 |
0.42 |
|
|
1,392,136 |
|
|
5,599 |
|
1.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,459,100 |
|
|
1,705 |
0.15 |
|
|
4,154,872 |
|
|
6,653 |
|
0.64 |
|
Short-term
borrowings |
|
233,426 |
|
|
228 |
0.39 |
|
|
172,834 |
|
|
235 |
|
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,692,526 |
|
|
1,933 |
0.17 |
|
|
4,327,706 |
|
|
6,888 |
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
751,719 |
|
|
|
|
|
|
548,178 |
|
|
|
|
|
Other
liabilities |
|
73,368 |
|
|
|
|
|
|
75,603 |
|
|
|
|
|
Shareholders' equity |
|
575,735 |
|
|
|
|
|
|
551,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
6,093,348 |
|
|
|
|
|
$ |
5,502,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, tax equivalent |
|
|
|
40,122 |
|
|
|
|
|
37,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
2.66 |
% |
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (net interest income to |
|
|
|
|
|
|
|
|
|
|
|
|
total interest earning assets) |
|
|
|
|
2.70 |
% |
|
|
|
|
2.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
equivalent adjustment |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
40,122 |
|
|
|
|
|
37,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2021 |
|
|
June 30, 2020 |
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ |
63,374 |
|
|
147 |
0.46 |
% |
$ |
57,830 |
|
|
527 |
|
1.82 |
% |
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
327,472 |
|
|
2,404 |
1.47 |
|
|
352,445 |
|
|
3,640 |
|
2.07 |
|
State and political subdivisions |
|
49 |
|
|
1 |
6.60 |
|
|
112 |
|
|
4 |
|
7.74 |
|
Corporate bonds |
|
60,160 |
|
|
639 |
2.12 |
|
|
39,913 |
|
|
726 |
|
3.64 |
|
Small Business Administration - guaranteed |
|
|
|
|
|
|
|
|
|
|
|
|
participation securities |
|
38,203 |
|
|
399 |
2.09 |
|
|
46,339 |
|
|
474 |
|
2.05 |
|
Other |
|
687 |
|
|
11 |
3.20 |
|
|
685 |
|
|
11 |
|
3.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
securities available for sale |
|
489,945 |
|
|
3,601 |
1.47 |
|
|
497,324 |
|
|
5,382 |
|
2.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
funds sold and other short-term Investments |
|
1,078,201 |
|
|
556 |
0.10 |
|
|
569,541 |
|
|
1,460 |
|
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to
maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage backed securities and collateralized
mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
obligations - residential |
|
12,723 |
|
|
234 |
3.68 |
|
|
17,671 |
|
|
337 |
|
3.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
held to maturity securities |
|
12,723 |
|
|
234 |
3.68 |
|
|
17,671 |
|
|
337 |
|
3.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
5,552 |
|
|
134 |
4.83 |
|
|
9,258 |
|
|
274 |
|
5.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans |
|
213,853 |
|
|
5,554 |
5.19 |
|
|
210,524 |
|
|
5,152 |
|
4.89 |
|
Residential
mortgage loans |
|
3,818,426 |
|
|
69,687 |
3.65 |
|
|
3,627,535 |
|
|
72,826 |
|
4.02 |
|
Home equity
lines of credit |
|
236,417 |
|
|
4,471 |
3.81 |
|
|
262,745 |
|
|
5,383 |
|
4.12 |
|
Installment
loans |
|
8,573 |
|
|
313 |
7.37 |
|
|
10,380 |
|
|
367 |
|
7.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
of unearned income |
|
4,277,269 |
|
|
80,025 |
3.75 |
|
|
4,111,184 |
|
|
83,728 |
|
4.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest earning assets |
|
5,863,690 |
|
|
84,550 |
2.89 |
|
|
5,204,978 |
|
|
91,181 |
|
3.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
(50,071 |
) |
|
|
|
|
|
(45,676 |
) |
|
|
|
|
Cash &
non-interest earning assets |
|
197,682 |
|
|
|
|
|
|
194,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
6,011,301 |
|
|
|
|
|
$ |
5,354,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing checking accounts |
$ |
1,117,113 |
|
|
98 |
0.02 |
% |
$ |
912,226 |
|
|
42 |
|
0.01 |
% |
Money market accounts |
|
727,363 |
|
|
519 |
0.14 |
|
|
627,897 |
|
|
1,958 |
|
0.63 |
|
Savings |
|
1,349,013 |
|
|
321 |
0.05 |
|
|
1,142,201 |
|
|
399 |
|
0.07 |
|
Time deposits |
|
1,229,838 |
|
|
2,927 |
0.48 |
|
|
1,381,025 |
|
|
11,990 |
|
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
4,423,327 |
|
|
3,865 |
0.18 |
|
|
4,063,349 |
|
|
14,389 |
|
0.71 |
|
Short-term
borrowings |
|
228,643 |
|
|
456 |
0.40 |
|
|
163,251 |
|
|
557 |
|
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
4,651,970 |
|
|
4,321 |
0.19 |
|
|
4,226,600 |
|
|
14,946 |
|
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
712,790 |
|
|
|
|
|
|
503,327 |
|
|
|
|
|
Other
liabilities |
|
73,276 |
|
|
|
|
|
|
77,303 |
|
|
|
|
|
Shareholders' equity |
|
573,265 |
|
|
|
|
|
|
546,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
6,011,301 |
|
|
|
|
|
$ |
5,354,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, tax equivalent |
|
|
|
80,229 |
|
|
|
|
|
76,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
2.70 |
% |
|
|
|
|
2.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (net interest income to |
|
|
|
|
|
|
|
|
|
|
|
|
total interest earning assets) |
|
|
|
|
2.74 |
% |
|
|
|
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
equivalent adjustment |
|
|
|
- |
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
80,229 |
|
|
|
|
|
76,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
6/30/2021 |
3/31/2021 |
6/30/2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity to Tangible Assets |
|
|
|
|
|
|
|
|
Total Assets
(GAAP) |
$ |
6,122,578 |
|
6,046,457 |
|
5,677,003 |
|
|
|
|
|
Less:
Intangible assets |
|
553 |
|
553 |
|
553 |
|
|
|
|
|
Tangible assets (Non-GAAP) |
|
6,122,025 |
|
6,045,904 |
|
5,676,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
(GAAP) |
|
578,593 |
|
571,031 |
|
553,421 |
|
|
|
|
|
Less:
Intangible assets |
|
553 |
|
553 |
|
553 |
|
|
|
|
|
Tangible equity (Non-GAAP) |
|
578,040 |
|
570,478 |
|
552,868 |
|
|
|
|
|
Tangible
Equity to Tangible Assets (Non-GAAP) |
|
9.44 |
% |
9.44 |
% |
9.74 |
% |
|
|
|
|
Equity to
Assets (GAAP) |
|
9.45 |
% |
9.44 |
% |
9.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
Efficiency Ratio |
|
6/30/2021 |
3/31/2021 |
6/30/2020 |
|
|
6/30/2021 |
6/30/2020 |
|
|
|
|
|
|
|
|
|
Net interest income (fully taxable equivalent) (Non-GAAP) |
$ |
40,122 |
|
40,107 |
|
37,681 |
|
|
$ |
80,229 |
|
76,235 |
|
Non-interest
income (GAAP) |
|
4,688 |
|
4,428 |
|
3,426 |
|
|
|
9,116 |
|
8,760 |
|
Less: Net
gain on securities |
|
- |
|
- |
|
- |
|
|
|
- |
|
1,155 |
|
Revenue used for efficiency ratio (Non-GAAP) |
|
44,810 |
|
44,535 |
|
41,107 |
|
|
|
89,345 |
|
83,840 |
|
|
|
|
|
|
|
|
|
|
Total
noninterest expense (GAAP) |
|
25,440 |
|
25,335 |
|
23,932 |
|
|
|
50,775 |
|
48,200 |
|
Less: Other
real estate (income) expense, net |
|
(60 |
) |
239 |
|
(32 |
) |
|
|
179 |
|
162 |
|
Expense used for efficiency ratio (Non-GAAP) |
|
25,500 |
|
25,096 |
|
23,964 |
|
|
|
50,596 |
|
48,038 |
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio |
|
56.91 |
% |
56.35 |
% |
58.30 |
% |
|
|
56.63 |
% |
57.30 |
% |
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