Executive Snapshot:
- Loan portfolio reaches all-time high:
- At
$5.0 billion as ofDecember 31, 2023 , loans continued to set new all-time highs - On average, total loans were up
$309.9 million or 6.6% for the fourth quarter 2023 compared to fourth quarter 2022
- At
- Continued solid financial results:
- Key metrics for 2023:
- Net income of
$58.6 million - Net interest income of
$171.8 million - Return on average assets (ROAA) of 0.97%
- Return on average equity (ROAE) of 9.46%
- Book value per share at period end was
$33.92 , up from$31.54 compared toDecember 31, 2022
- Net income of
- Key metrics for 2023:
- Superior asset quality:
- Nonperforming loans (NPLs) were
$17.7 million as ofDecember 31, 2023 , up slightly fromDecember 31, 2022 , and continue to remain at low levels - NPLs to total loans improved to 0.35% compared to 0.37% at
December 31, 2022 - Nonperforming assets (NPAs) to total assets improved to 0.29% compared to 0.33% at
December 31, 2022
- Nonperforming loans (NPLs) were
- Capital continues to grow:
- Consolidated equity to assets increased to 10.46% at
December 31, 2023 from 10.00% atDecember 31, 2022
- Consolidated equity to assets increased to 10.46% at
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced full year 2023 net income of
Overview
Chairman, President, and CEO,
TrustCo saw deposit balances rebound from the end of the prior year with net deposit inflows during the year. Loan growth continued across all categories year over year, led by an increase in residential mortgages. Loan portfolio expansion was funded by a combination of utilizing a portion of our strong cash balances and by cash flow from investments, deposit inflows, and cash flow from the existing loan portfolio. The Federal Reserve’s decision to raise the target Federal Funds rate multiple times from
Details
Average loans were up
We have been proactive in retaining deposits through pricing and aggressive marketing, which has resulted in increased balances since
Net interest income was
Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of
At
A conference call to discuss fourth quarter 2023 results will be held at
About TrustCo Bank Corp NY
TrustCo Bank Corp NY is a
In addition, the Bank’s
Forward-Looking Statements
All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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 development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, the growth of loans and deposits throughout our branch network, the increase in residential mortgage rates, and our ability to capitalize on economic changes in the areas in which we operate. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, continued elevated interest rates and ongoing armed conflicts (including the
TRUSTCO BANK CORP NY | ||||||||||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
Summary of operations | ||||||||||||||||||||
Net interest income | $ | 38,607 | $ | 42,221 | $ | 49,186 | ||||||||||||||
Provision for credit losses | 1,350 | 100 | 50 | |||||||||||||||||
Noninterest income | 4,474 | 4,574 | 4,775 | |||||||||||||||||
Noninterest expense | 28,831 | 27,460 | 26,405 | |||||||||||||||||
Net income | 9,848 | 14,680 | 20,910 | |||||||||||||||||
Per share | ||||||||||||||||||||
Net income per share: | ||||||||||||||||||||
- Basic | $ | 0.52 | $ | 0.77 | $ | 1.10 | ||||||||||||||
- Diluted | 0.52 | 0.77 | 1.10 | |||||||||||||||||
Cash dividends | 0.36 | 0.36 | 0.36 | |||||||||||||||||
Book value at period end | 33.92 | 32.80 | 31.54 | |||||||||||||||||
Market price at period end | 31.05 | 27.29 | 37.59 | |||||||||||||||||
At period end | ||||||||||||||||||||
Full time equivalent employees | 750 | 764 | 750 | |||||||||||||||||
Full service banking offices | 140 | 143 | 143 | |||||||||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 0.64 | % | 0.96 | % | 1.38 | % | ||||||||||||||
Return on average equity | 6.21 | 9.32 | 13.91 | |||||||||||||||||
Efficiency ratio (1) | 60.16 | 58.33 | 48.75 | |||||||||||||||||
Net interest spread | 2.21 | 2.55 | 3.28 | |||||||||||||||||
Net interest margin | 2.60 | 2.85 | 3.34 | |||||||||||||||||
Dividend payout ratio | 69.54 | 46.65 | 32.81 | |||||||||||||||||
Capital ratios at period end | ||||||||||||||||||||
Consolidated equity to assets | 10.46 | % | 10.31 | % | 10.00 | % | ||||||||||||||
Consolidated tangible equity to tangible assets (2) | 10.45 | % | 10.30 | % | 9.99 | % | ||||||||||||||
Asset quality analysis at period end | ||||||||||||||||||||
Nonperforming loans to total loans | 0.35 | % | 0.36 | % | 0.37 | % | ||||||||||||||
Nonperforming assets to total assets | 0.29 | 0.31 | 0.33 | |||||||||||||||||
Allowance for credit losses on loans to total loans | 0.97 | 0.95 | 0.97 | |||||||||||||||||
Coverage ratio (3) | 2.7 | x | 2.6 | x | 2.6 | x | ||||||||||||||
(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense and non-recurring expenses) divided by taxable equivalent net interest income plus noninterest income (excluding non-recurring loss). See Non-GAAP Financial Measures Reconciliation. | ||||||||||||||||||||
(2) Non-GAAP measure; calculated as total shareholders' equity less | ||||||||||||||||||||
(3) Calculated as allowance for credit losses on loans divided by total nonperforming loans. | ||||||||||||||||||||
FINANCIAL HIGHLIGHTS, Continued | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
Summary of operations | ||||||||||||||||||||
Net interest income | $ | 171,845 | 180,135 | |||||||||||||||||
Provision (Credit) for credit losses | 1,250 | (341 | ) | |||||||||||||||||
Noninterest income | 18,315 | 19,260 | ||||||||||||||||||
Noninterest expense | 111,297 | 100,319 | ||||||||||||||||||
Net income | 58,646 | 75,234 | ||||||||||||||||||
Per share | ||||||||||||||||||||
Net income per share: | ||||||||||||||||||||
- Basic | $ | 3.08 | 3.93 | |||||||||||||||||
- Diluted | 3.08 | 3.93 | ||||||||||||||||||
Cash dividends | 1.44 | 1.41 | ||||||||||||||||||
Book value at period end | 33.92 | 31.54 | ||||||||||||||||||
Market price at period end | 31.05 | 37.59 | ||||||||||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 0.97 | % | 1.22 | |||||||||||||||||
Return on average equity | 9.46 | 12.60 | ||||||||||||||||||
Efficiency ratio (1) | 56.72 | 50.22 | ||||||||||||||||||
Net interest spread | 2.64 | 2.96 | ||||||||||||||||||
Net interest margin | 2.91 | 2.99 | ||||||||||||||||||
Dividend payout ratio | 46.71 | 35.86 | ||||||||||||||||||
(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense and non-recurring expenses) divided by taxable equivalent net interest income plus noninterest income (excluding non-recurring loss). See Non-GAAP Financial Measures Reconciliation. | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 49,201 | $ | 47,921 | $ | 46,062 | $ | 44,272 | $ | 42,711 | ||||||||||
Interest and dividends on securities available for sale: | ||||||||||||||||||||
U. S. government sponsored enterprises | 750 | 672 | 691 | 692 | 693 | |||||||||||||||
State and political subdivisions | 1 | - | 1 | - | - | |||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations - residential | 1,533 | 1,485 | 1,543 | 1,585 | 1,606 | |||||||||||||||
Corporate bonds | 477 | 473 | 516 | 521 | 523 | |||||||||||||||
102 | 107 | 111 | 117 | 124 | ||||||||||||||||
Other securities | 3 | 2 | 3 | 2 | 2 | |||||||||||||||
Total interest and dividends on securities available for sale | 2,866 | 2,739 | 2,865 | 2,917 | 2,948 | |||||||||||||||
Interest on held to maturity securities: | ||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations - residential | 70 | 73 | 75 | 78 | 81 | |||||||||||||||
Total interest on held to maturity securities | 70 | 73 | 75 | 78 | 81 | |||||||||||||||
149 | 131 | 110 | 110 | 98 | ||||||||||||||||
Interest on federal funds sold and other short-term investments | 6,354 | 6,688 | 6,970 | 6,555 | 6,246 | |||||||||||||||
Total interest income | 58,640 | 57,552 | 56,082 | 53,932 | 52,084 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits: | ||||||||||||||||||||
Interest-bearing checking | 165 | 102 | 49 | 66 | 61 | |||||||||||||||
Savings | 707 | 639 | 655 | 530 | 401 | |||||||||||||||
Money market deposit accounts | 2,500 | 2,384 | 1,756 | 814 | 389 | |||||||||||||||
Time deposits | 16,460 | 11,962 | 9,291 | 5,272 | 1,839 | |||||||||||||||
Interest on short-term borrowings | 201 | 244 | 279 | 285 | 208 | |||||||||||||||
Total interest expense | 20,033 | 15,331 | 12,030 | 6,967 | 2,898 | |||||||||||||||
Net interest income | 38,607 | 42,221 | 44,052 | 46,965 | 49,186 | |||||||||||||||
Less: Provision (Credit) for credit losses | 1,350 | 100 | (500 | ) | 300 | 50 | ||||||||||||||
Net interest income after provision (credit) for credit losses | 37,257 | 42,121 | 44,552 | 46,665 | 49,136 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
1,612 | 1,627 | 1,412 | 1,774 | 1,773 | ||||||||||||||||
Fees for services to customers | 2,563 | 2,590 | 2,847 | 2,648 | 2,783 | |||||||||||||||
Other | 299 | 357 | 339 | 247 | 219 | |||||||||||||||
Total noninterest income | 4,474 | 4,574 | 4,598 | 4,669 | 4,775 | |||||||||||||||
Noninterest expenses: | ||||||||||||||||||||
Salaries and employee benefits | 12,444 | 12,393 | 13,122 | 13,283 | 13,067 | |||||||||||||||
Net occupancy expense | 4,209 | 4,358 | 4,262 | 4,598 | 4,261 | |||||||||||||||
Equipment expense | 1,852 | 1,923 | 1,873 | 1,962 | 1,700 | |||||||||||||||
Professional services | 1,561 | 1,717 | 1,360 | 1,607 | 1,251 | |||||||||||||||
Outsourced services | 2,532 | 2,720 | 2,491 | 2,296 | 2,102 | |||||||||||||||
Advertising expense | 384 | 586 | 518 | 390 | 532 | |||||||||||||||
1,085 | 1,078 | 1,085 | 1,052 | 770 | ||||||||||||||||
Other real estate (income) expense, net | (12 | ) | 163 | 148 | 225 | 101 | ||||||||||||||
Other | 4,776 | 2,522 | 2,468 | 2,266 | 2,621 | |||||||||||||||
Total noninterest expenses | 28,831 | 27,460 | 27,327 | 27,679 | 26,405 | |||||||||||||||
Income before taxes | 12,900 | 19,235 | 21,823 | 23,655 | 27,506 | |||||||||||||||
Income taxes | 3,052 | 4,555 | 5,451 | 5,909 | 6,596 | |||||||||||||||
Net income | $ | 9,848 | $ | 14,680 | $ | 16,372 | $ | 17,746 | $ | 20,910 | ||||||||||
Net income per common share: | ||||||||||||||||||||
- Basic | $ | 0.52 | $ | 0.77 | $ | 0.86 | $ | 0.93 | $ | 1.10 | ||||||||||
- Diluted | 0.52 | 0.77 | 0.86 | 0.93 | 1.10 | |||||||||||||||
Average basic shares (in thousands) | 19,024 | 19,024 | 19,024 | 19,024 | 19,045 | |||||||||||||||
Average diluted shares (in thousands) | 19,026 | 19,024 | 19,024 | 19,027 | 19,050 | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME, Continued | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 187,456 | 162,214 | |||||||||||||||||
Interest and dividends on securities available for sale: | ||||||||||||||||||||
U. S. government sponsored enterprises | 2,805 | 1,405 | ||||||||||||||||||
State and political subdivisions | 2 | 2 | ||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations - residential | 6,146 | 5,677 | ||||||||||||||||||
Corporate bonds | 1,987 | 1,804 | ||||||||||||||||||
437 | 551 | |||||||||||||||||||
Other securities | 10 | 9 | ||||||||||||||||||
Total interest and dividends on securities available for sale | 11,387 | 9,448 | ||||||||||||||||||
Interest on held to maturity securities: | ||||||||||||||||||||
Mortgage-backed securities-residential | 296 | 343 | ||||||||||||||||||
Total interest on held to maturity securities | 296 | 343 | ||||||||||||||||||
500 | 305 | |||||||||||||||||||
Interest on federal funds sold and other short-term investments | 26,567 | 14,292 | ||||||||||||||||||
Total interest income | 226,206 | 186,602 | ||||||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits: | ||||||||||||||||||||
Interest-bearing checking | 382 | 190 | ||||||||||||||||||
Savings | 2,531 | 920 | ||||||||||||||||||
Money market deposit accounts | 7,454 | 1,050 | ||||||||||||||||||
Time deposits | 42,985 | 3,567 | ||||||||||||||||||
Interest on short-term borrowings | 1,009 | 740 | ||||||||||||||||||
Total interest expense | 54,361 | 6,467 | ||||||||||||||||||
Net interest income | 171,845 | 180,135 | ||||||||||||||||||
Less: Provision (Credit) for credit losses | 1,250 | (341 | ) | |||||||||||||||||
Net interest income after provision (credit) for credit losses | 170,595 | 180,476 | ||||||||||||||||||
Noninterest income: | ||||||||||||||||||||
6,425 | 7,037 | |||||||||||||||||||
Fees for services to customers | 10,648 | 10,947 | ||||||||||||||||||
Other | 1,242 | 1,276 | ||||||||||||||||||
Total noninterest income | 18,315 | 19,260 | ||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||
Salaries and employee benefits | 51,242 | 45,904 | ||||||||||||||||||
Net occupancy expense | 17,427 | 17,527 | ||||||||||||||||||
Equipment expense | 7,610 | 6,487 | ||||||||||||||||||
Professional services | 6,245 | 5,577 | ||||||||||||||||||
Outsourced services | 10,039 | 9,210 | ||||||||||||||||||
Advertising expense | 1,878 | 2,046 | ||||||||||||||||||
4,300 | 3,159 | |||||||||||||||||||
Other real estate expense, net | 524 | 310 | ||||||||||||||||||
Other | 12,032 | 10,099 | ||||||||||||||||||
Total noninterest expenses | 111,297 | 100,319 | ||||||||||||||||||
Income before taxes | 77,613 | 99,417 | ||||||||||||||||||
Income taxes | 18,967 | 24,183 | ||||||||||||||||||
Net income | $ | 58,646 | 75,234 | |||||||||||||||||
Net income per common share: | ||||||||||||||||||||
- Basic | $ | 3.08 | 3.93 | |||||||||||||||||
- Diluted | 3.08 | 3.93 | ||||||||||||||||||
Average basic shares (in thousands) | 19,024 | 19,131 | ||||||||||||||||||
Average diluted shares (in thousands) | 19,025 | 19,133 | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Cash and due from banks | $ | 49,274 | $ | 45,940 | $ | 55,662 | $ | 47,595 | $ | 43,429 | ||||||||||
Federal funds sold and other short term investments | 528,730 | 461,321 | 547,695 | 589,389 | 607,170 | |||||||||||||||
Total cash and cash equivalents | 578,004 | 507,261 | 603,357 | 636,984 | 650,599 | |||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U. S. government sponsored enterprises | 118,668 | 121,474 | 113,570 | 119,132 | 118,187 | |||||||||||||||
States and political subdivisions | 26 | 34 | 34 | 34 | 34 | |||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations - residential | 237,677 | 233,719 | 243,444 | 255,556 | 260,316 | |||||||||||||||
17,186 | 17,316 | 18,382 | 19,821 | 20,977 | ||||||||||||||||
Corporate bonds | 78,052 | 76,935 | 76,618 | 81,464 | 81,346 | |||||||||||||||
Other securities | 680 | 657 | 656 | 652 | 653 | |||||||||||||||
Total securities available for sale | 452,289 | 450,135 | 452,704 | 476,659 | 481,513 | |||||||||||||||
Held to maturity securities: | ||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations-residential | 6,458 | 6,724 | 7,043 | 7,382 | 7,707 | |||||||||||||||
Total held to maturity securities | 6,458 | 6,724 | 7,043 | 7,382 | 7,707 | |||||||||||||||
6,203 | 6,203 | 6,203 | 5,797 | 5,797 | ||||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 273,515 | 268,642 | 251,434 | 246,307 | 231,011 | |||||||||||||||
Residential mortgage loans | 4,365,063 | 4,343,006 | 4,310,005 | 4,241,459 | 4,203,451 | |||||||||||||||
Home equity line of credit | 347,415 | 332,028 | 308,976 | 296,490 | 286,432 | |||||||||||||||
Installment loans | 16,886 | 16,605 | 16,396 | 15,326 | 12,307 | |||||||||||||||
Loans, net of deferred net costs | 5,002,879 | 4,960,281 | 4,886,811 | 4,799,582 | 4,733,201 | |||||||||||||||
Less: Allowance for credit losses on loans | 48,578 | 47,226 | 46,914 | 46,685 | 46,032 | |||||||||||||||
Net loans | 4,954,301 | 4,913,055 | 4,839,897 | 4,752,897 | 4,687,169 | |||||||||||||||
Bank premises and equipment, net | 34,007 | 32,135 | 32,351 | 32,305 | 32,556 | |||||||||||||||
Operating lease right-of-use assets | 40,542 | 41,475 | 43,113 | 43,478 | 44,727 | |||||||||||||||
Other assets | 96,387 | 97,310 | 90,957 | 90,306 | 89,984 | |||||||||||||||
Total assets | $ | 6,168,191 | $ | 6,054,298 | $ | 6,075,625 | $ | 6,045,808 | $ | 6,000,052 | ||||||||||
LIABILITIES: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 754,532 | $ | 773,293 | $ | 791,353 | $ | 806,075 | $ | 838,147 | ||||||||||
Interest-bearing checking | 1,015,213 | 1,033,898 | 1,082,989 | 1,124,785 | 1,183,321 | |||||||||||||||
Savings accounts | 1,179,241 | 1,235,658 | 1,315,893 | 1,400,887 | 1,521,473 | |||||||||||||||
Money market deposit accounts | 565,767 | 610,012 | 625,253 | 600,410 | 621,106 | |||||||||||||||
Time deposits | 1,836,024 | 1,581,504 | 1,442,959 | 1,280,301 | 1,028,763 | |||||||||||||||
Total deposits | 5,350,777 | 5,234,365 | 5,258,447 | 5,212,458 | 5,192,810 | |||||||||||||||
Short-term borrowings | 88,990 | 103,110 | 113,765 | 134,293 | 122,700 | |||||||||||||||
Operating lease liabilities | 44,471 | 45,418 | 47,172 | 47,643 | 48,980 | |||||||||||||||
Accrued expenses and other liabilities | 38,668 | 47,479 | 34,852 | 36,711 | 35,575 | |||||||||||||||
Total liabilities | 5,522,906 | 5,430,372 | 5,454,236 | 5,431,105 | 5,400,065 | |||||||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||||||||||
Capital stock | 20,058 | 20,058 | 20,058 | 20,058 | 20,058 | |||||||||||||||
Surplus | 257,181 | 257,078 | 257,078 | 257,078 | 257,078 | |||||||||||||||
Undivided profits | 425,069 | 422,082 | 414,251 | 404,728 | 393,831 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (13,237 | ) | (31,506 | ) | (26,212 | ) | (23,375 | ) | (27,194 | ) | ||||||||||
(43,786 | ) | (43,786 | ) | (43,786 | ) | (43,786 | ) | (43,786 | ) | |||||||||||
Total shareholders' equity | 645,285 | 623,926 | 621,389 | 614,703 | 599,987 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 6,168,191 | $ | 6,054,298 | $ | 6,075,625 | $ | 6,045,808 | $ | 6,000,052 | ||||||||||
Outstanding shares (in thousands) | 19,024 | 19,024 | 19,024 | 19,024 | 19,024 | |||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Nonperforming Assets | ||||||||||||||||||||
Loans in nonaccrual status: | ||||||||||||||||||||
Commercial | $ | 536 | $ | 540 | $ | 545 | $ | 560 | $ | 219 | ||||||||||
Real estate mortgage - 1 to 4 family | 14,375 | 14,633 | 16,260 | 15,722 | 14,949 | |||||||||||||||
Installment | 151 | 93 | 124 | 59 | 23 | |||||||||||||||
Total non-accrual loans | 15,062 | 15,266 | 16,929 | 16,341 | 15,191 | |||||||||||||||
Other nonperforming real estate mortgages - 1 to 4 family | 3 | 5 | 7 | 8 | 10 | |||||||||||||||
Total nonperforming loans | 15,065 | 15,271 | 16,936 | 16,349 | 15,201 | |||||||||||||||
Other real estate owned | 194 | 1,185 | 1,412 | 1,869 | 2,061 | |||||||||||||||
Total nonperforming assets | $ | 15,259 | $ | 16,456 | $ | 18,348 | $ | 18,218 | $ | 17,262 | ||||||||||
Loans in nonaccrual status: | ||||||||||||||||||||
Commercial | $ | 314 | $ | 314 | $ | 314 | $ | 314 | $ | 314 | ||||||||||
Real estate mortgage - 1 to 4 family | 2,272 | 2,228 | 2,170 | 2,437 | 1,895 | |||||||||||||||
Installment | 15 | 65 | - | 62 | 83 | |||||||||||||||
Total non-accrual loans | 2,601 | 2,607 | 2,484 | 2,813 | 2,292 | |||||||||||||||
Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | - | |||||||||||||||
Total nonperforming loans | 2,601 | 2,607 | 2,484 | 2,813 | 2,292 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Total nonperforming assets | $ | 2,601 | $ | 2,607 | $ | 2,484 | $ | 2,813 | $ | 2,292 | ||||||||||
Total | ||||||||||||||||||||
Loans in nonaccrual status: | ||||||||||||||||||||
Commercial | $ | 850 | $ | 854 | $ | 859 | $ | 874 | $ | 533 | ||||||||||
Real estate mortgage - 1 to 4 family | 16,647 | 16,861 | 18,430 | 18,159 | 16,844 | |||||||||||||||
Installment | 166 | 158 | 124 | 121 | 106 | |||||||||||||||
Total non-accrual loans | 17,663 | 17,873 | 19,413 | 19,154 | 17,483 | |||||||||||||||
Other nonperforming real estate mortgages - 1 to 4 family | 3 | 5 | 7 | 8 | 10 | |||||||||||||||
Total nonperforming loans | 17,666 | 17,878 | 19,420 | 19,162 | 17,493 | |||||||||||||||
Other real estate owned | 194 | 1,185 | 1,412 | 1,869 | 2,061 | |||||||||||||||
Total nonperforming assets | $ | 17,860 | $ | 19,063 | $ | 20,832 | $ | 21,031 | $ | 19,554 | ||||||||||
Quarterly Net (Recoveries) Chargeoffs | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | (129 | ) | $ | - | $ | - | |||||||||
Real estate mortgage - 1 to 4 family | 219 | (26 | ) | (161 | ) | (53 | ) | (46 | ) | |||||||||||
Installment | 23 | 14 | 21 | (6 | ) | 31 | ||||||||||||||
Total net chargeoffs (recoveries) | $ | 242 | $ | (12 | ) | $ | (269 | ) | $ | (59 | ) | $ | (15 | ) | ||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Real estate mortgage - 1 to 4 family | - | - | - | (25 | ) | - | ||||||||||||||
Installment | 6 | - | 40 | 31 | - | |||||||||||||||
Total net chargeoffs (recoveries) | $ | 6 | $ | - | $ | 40 | $ | 6 | $ | - | ||||||||||
Total | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | (129 | ) | $ | - | $ | - | |||||||||
Real estate mortgage - 1 to 4 family | 219 | (26 | ) | (161 | ) | (78 | ) | (46 | ) | |||||||||||
Installment | 29 | 14 | 61 | 25 | 31 | |||||||||||||||
Total net chargeoffs (recoveries) | $ | 248 | $ | (12 | ) | $ | (229 | ) | $ | (53 | ) | $ | (15 | ) | ||||||
Asset Quality Ratios | ||||||||||||||||||||
Total nonperforming loans (1) | $ | 17,666 | $ | 17,878 | $ | 19,420 | $ | 19,162 | $ | 17,493 | ||||||||||
Total nonperforming assets (1) | 17,860 | 19,063 | 20,832 | 21,031 | 19,554 | |||||||||||||||
Total net chargeoffs (recoveries) (2) | 248 | (12 | ) | (229 | ) | (53 | ) | (15 | ) | |||||||||||
Allowance for credit losses on loans (1) | 48,578 | 47,226 | 46,914 | 46,685 | 46,032 | |||||||||||||||
Nonperforming loans to total loans | 0.35 | % | 0.36 | % | 0.40 | % | 0.40 | % | 0.37 | % | ||||||||||
Nonperforming assets to total assets | 0.29 | % | 0.31 | % | 0.34 | % | 0.35 | % | 0.33 | % | ||||||||||
Allowance for credit losses on loans to total loans | 0.97 | % | 0.95 | % | 0.96 | % | 0.97 | % | 0.97 | % | ||||||||||
Coverage ratio (1) | 275.0 | % | 264.2 | % | 241.6 | % | 243.6 | % | 263.1 | % | ||||||||||
Annualized net chargeoffs (recoveries) to average loans (2) | 0.02 | % | 0.00 | % | -0.02 | % | 0.00 | % | 0.00 | % | ||||||||||
Allowance for credit losses on loans to annualized net chargeoffs (recoveries) (2) | 49.0 | x | N/A | N/A | N/A | N/A | ||||||||||||||
* Includes New York, | ||||||||||||||||||||
(1) At period-end | ||||||||||||||||||||
(2) For the three-month period ended | ||||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY - | |||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
(Unaudited) | Three months ended | Three months ended | |||||||||||||||||
Average | Interest | Average | Average | Interest | Average | ||||||||||||||
Balance | Rate | Balance | Rate | ||||||||||||||||
Assets | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||
U. S. government sponsored enterprises | $ | 125,572 | $ | 750 | 2.39 | % | $ | 120,415 | $ | 693 | 2.30 | % | |||||||
Mortgage backed securities and collateralized mortgage obligations - residential | 267,341 | 1,533 | 2.28 | 292,845 | 1,606 | 2.18 | |||||||||||||
State and political subdivisions | 32 | 1 | 6.62 | 40 | 1 | 7.81 | |||||||||||||
Corporate bonds | 80,207 | 477 | 2.38 | 85,701 | 523 | 2.44 | |||||||||||||
18,990 | 102 | 2.15 | 23,805 | 124 | 2.10 | ||||||||||||||
Other | 689 | 3 | 1.74 | 686 | 2 | 1.17 | |||||||||||||
Total securities available for sale | 492,831 | 2,866 | 2.33 | 523,492 | 2,949 | 2.25 | |||||||||||||
Federal funds sold and other short-term Investments | 461,889 | 6,354 | 5.46 | 669,280 | 6,246 | 3.70 | |||||||||||||
Held to maturity securities: | |||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential | 6,591 | 70 | 4.25 | 7,886 | 81 | 4.12 | |||||||||||||
Total held to maturity securities | 6,591 | 70 | 4.25 | 7,886 | 81 | 4.12 | |||||||||||||
6,203 | 149 | 9.61 | 5,797 | 98 | 6.76 | ||||||||||||||
Commercial loans | 273,622 | 3,589 | 5.25 | 223,164 | 2,756 | 4.94 | |||||||||||||
Residential mortgage loans | 4,353,660 | 40,009 | 3.68 | 4,161,481 | 36,109 | 3.47 | |||||||||||||
Home equity lines of credit | 340,670 | 5,338 | 6.22 | 278,853 | 3,661 | 5.21 | |||||||||||||
Installment loans | 16,359 | 265 | 6.44 | 10,886 | 185 | 6.74 | |||||||||||||
Loans, net of unearned income | 4,984,311 | 49,201 | 3.94 | 4,674,384 | 42,711 | 3.65 | |||||||||||||
Total interest earning assets | 5,951,825 | $ | 58,640 | 3.93 | 5,880,839 | $ | 52,085 | 3.54 | |||||||||||
Allowance for credit losses on loans | (47,458 | ) | (45,722 | ) | |||||||||||||||
Cash & non-interest earning assets | 169,791 | 171,921 | |||||||||||||||||
Total assets | $ | 6,074,158 | $ | 6,007,038 | |||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Interest bearing checking accounts | $ | 1,004,744 | $ | 165 | 0.07 | % | $ | 1,164,178 | $ | 61 | 0.02 | % | |||||||
Money market accounts | 586,025 | 2,500 | 1.69 | 668,537 | 389 | 0.23 | |||||||||||||
Savings | 1,205,388 | 707 | 0.23 | 1,540,163 | 401 | 0.10 | |||||||||||||
Time deposits | 1,720,871 | 16,460 | 3.79 | 983,590 | 1,839 | 0.74 | |||||||||||||
Total interest bearing deposits | 4,517,028 | 19,832 | 1.74 | 4,356,468 | 2,690 | 0.25 | |||||||||||||
Short-term borrowings | 92,529 | 201 | 0.86 | 126,562 | 208 | 0.65 | |||||||||||||
Total interest bearing liabilities | 4,609,557 | $ | 20,033 | 1.72 | 4,483,030 | $ | 2,898 | 0.26 | |||||||||||
Demand deposits | 754,078 | 845,493 | |||||||||||||||||
Other liabilities | 81,297 | 82,085 | |||||||||||||||||
Shareholders' equity | 629,226 | 596,430 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,074,158 | $ | 6,007,038 | |||||||||||||||
Net interest income, GAAP and non-GAAP tax equivalent (1) | $ | 38,607 | $ | 49,187 | |||||||||||||||
Net interest spread, GAAP and non-GAAP tax equivalent (1) | 2.21 | % | 3.28 | % | |||||||||||||||
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1) | 2.60 | % | 3.34 | % | |||||||||||||||
Tax equivalent adjustment (1) | - | (1 | ) | ||||||||||||||||
Net interest income | $ | 38,607 | $ | 49,186 | |||||||||||||||
(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation. | |||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY - | |||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
(Unaudited) | Year ended | Year ended | |||||||||||||||||
Average | Interest | Average | Average | Interest | Average | ||||||||||||||
Balance | Rate | Balance | Rate | ||||||||||||||||
Assets | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||
U. S. government sponsored enterprises | $ | 121,574 | 2,805 | 2.31 | % | $ | 89,557 | 1,405 | 1.57 | % | |||||||||
Mortgage backed securities and collateralized mortgage obligations - residential | 275,565 | 6,146 | 2.23 | 284,901 | 5,677 | 1.99 | |||||||||||||
State and political subdivisions | 33 | 2 | 6.71 | 41 | 3 | 6.66 | |||||||||||||
Corporate bonds | 82,865 | 1,987 | 2.40 | 78,266 | 1,804 | 2.31 | |||||||||||||
20,410 | 437 | 2.14 | 26,679 | 551 | 2.07 | ||||||||||||||
Other | 686 | 10 | 1.46 | 686 | 9 | 1.31 | |||||||||||||
Total securities available for sale | 501,133 | 11,387 | 2.27 | 480,130 | 9,449 | 1.97 | |||||||||||||
Federal funds sold and other short-term Investments | 521,021 | 26,567 | 5.10 | 969,043 | 14,292 | 1.47 | |||||||||||||
Held to maturity securities: | |||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential | 7,053 | 296 | 4.20 | 8,647 | 343 | 3.97 | |||||||||||||
Total held to maturity securities | 7,053 | 296 | 4.20 | 8,647 | 343 | 3.97 | |||||||||||||
6,018 | 500 | 8.31 | 5,749 | 305 | 5.31 | ||||||||||||||
Commercial loans | 255,666 | 13,306 | 5.20 | 206,144 | 10,168 | 4.93 | |||||||||||||
Residential mortgage loans | 4,290,241 | 154,235 | 3.60 | 4,081,120 | 140,420 | 3.44 | |||||||||||||
Home equity lines of credit | 313,914 | 18,936 | 6.03 | 254,168 | 10,950 | 4.31 | |||||||||||||
Installment loans | 15,345 | 979 | 6.38 | 9,849 | 676 | 6.87 | |||||||||||||
Loans, net of unearned income | 4,875,166 | 187,456 | 3.84 | 4,551,281 | 162,214 | 3.56 | |||||||||||||
Total interest earning assets | 5,910,391 | 226,206 | 3.83 | 6,014,850 | 186,603 | 3.10 | |||||||||||||
Allowance for credit losses on loans | (46,971 | ) | (46,124 | ) | |||||||||||||||
Cash & non-interest earning assets | 172,641 | 190,278 | |||||||||||||||||
Total assets | $ | 6,036,061 | $ | 6,159,004 | |||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Interest bearing checking accounts | $ | 1,067,972 | 382 | 0.04 | % | $ | 1,190,337 | 190 | 0.02 | % | |||||||||
Money market accounts | 606,230 | 7,454 | 1.23 | 745,714 | 1,050 | 0.14 | |||||||||||||
Savings | 1,323,995 | 2,531 | 0.19 | 1,553,016 | 920 | 0.06 | |||||||||||||
Time deposits | 1,437,336 | 42,985 | 2.99 | 974,428 | 3,567 | 0.37 | |||||||||||||
Total interest bearing deposits | 4,435,533 | 53,352 | 1.20 | 4,463,495 | 5,727 | 0.13 | |||||||||||||
Short-term borrowings | 114,639 | 1,009 | 0.88 | 177,599 | 740 | 0.42 | |||||||||||||
Total interest bearing liabilities | 4,550,172 | 54,361 | 1.19 | 4,641,094 | 6,467 | 0.14 | |||||||||||||
Demand deposits | 784,021 | 838,944 | |||||||||||||||||
Other liabilities | 81,658 | 81,880 | |||||||||||||||||
Shareholders' equity | 620,212 | 597,086 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,036,063 | $ | 6,159,004 | |||||||||||||||
Net interest income, GAAP and non-GAAP tax equivalent (1) | 171,845 | 180,136 | |||||||||||||||||
Net interest spread, GAAP and non-GAAP tax equivalent (1) | 2.64 | % | 2.96 | % | |||||||||||||||
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1) | 2.91 | % | 2.99 | % | |||||||||||||||
Tax equivalent adjustment (1) | - | (1 | ) | ||||||||||||||||
Net interest income | 171,845 | 180,135 | |||||||||||||||||
(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation. | |||||||||||||||||||
Non-GAAP Financial Measures Reconciliation
Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. 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. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.
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 total 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. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.
Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets. Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets. We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.
The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, strategic branch closing costs, and a non-recurring expense related to the settlement of a class action lawsuit, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, excluding gain/loss on the disposal of assets from strategic branch closures from this calculation. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.
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 equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below. We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.
NON-GAAP FINANCIAL MEASURES RECONCILIATION | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Tangible Book Value Per Share | ||||||||||||||||||
Equity (GAAP) | $ | 645,285 | $ | 623,926 | $ | 599,987 | ||||||||||||
Less: Intangible assets | 553 | 553 | 553 | |||||||||||||||
Tangible equity (Non-GAAP) | $ | 644,732 | $ | 623,373 | $ | 599,434 | ||||||||||||
Shares outstanding | 19,024 | 19,024 | 19,024 | |||||||||||||||
Tangible book value per share | 33.89 | 32.77 | 31.51 | |||||||||||||||
Book value per share | 33.92 | 32.80 | 31.54 | |||||||||||||||
Tangible Equity to Tangible Assets | ||||||||||||||||||
Total Assets (GAAP) | $ | 6,168,191 | $ | 6,054,298 | $ | 6,000,052 | ||||||||||||
Less: Intangible assets | 553 | 553 | 553 | |||||||||||||||
Tangible assets (Non-GAAP) | $ | 6,167,638 | $ | 6,053,745 | $ | 5,999,499 | ||||||||||||
Tangible Equity to Tangible Assets (Non-GAAP) | 10.45 | % | 10.30 | % | 9.99 | % | ||||||||||||
Equity to Assets (GAAP) | 10.46 | % | 10.31 | % | 10.00 | % | ||||||||||||
Three months ended | Year ended | |||||||||||||||||
Efficiency Ratio | ||||||||||||||||||
Net interest income (GAAP) | $ | 38,607 | $ | 42,221 | $ | 49,186 | $ | 171,845 | $ | 180,135 | ||||||||
Taxable equivalent adjustment | - | - | 1 | - | 1 | |||||||||||||
Net interest income (fully taxable equivalent) (Non-GAAP) | 38,607 | 42,221 | 49,187 | 171,845 | 180,136 | |||||||||||||
Non-interest income (GAAP) | 4,474 | 4,574 | 4,775 | 18,315 | 19,260 | |||||||||||||
Add: Non-recurring loss (1) | 101 | - | - | 101 | - | |||||||||||||
Less: Net gain on sale of building | - | - | - | - | 268 | |||||||||||||
Revenue used for efficiency ratio (Non-GAAP) | $ | 43,182 | $ | 46,795 | $ | 53,962 | $ | 190,261 | $ | 199,128 | ||||||||
Total noninterest expense (GAAP) | $ | 28,831 | $ | 27,460 | $ | 26,405 | $ | 111,297 | $ | 100,319 | ||||||||
Less: Branch closure expense | 114 | - | - | 114 | - | |||||||||||||
Less: Non-recurring expenses (1) | 2,750 | - | - | 2,750 | - | |||||||||||||
Less: Other real estate (income) expense, net | (12 | ) | 163 | 101 | 524 | 310 | ||||||||||||
Expense used for efficiency ratio (Non-GAAP) | $ | 25,979 | $ | 27,297 | $ | 26,304 | $ | 107,909 | $ | 100,009 | ||||||||
Efficiency Ratio | 60.16 | % | 58.33 | % | 48.75 | % | 56.72 | % | 50.22 | % | ||||||||
(1) There were no non-recurring losses or expenses in the prior period. |
Subsidiary: | ||
Contact: | ||
Executive Vice President | ||
(518) 381-3693 |
Source: TrustCo Bank Corp NY
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