That magical time is here again. Publication of the Summary of Deposits as of 30 June 2011 from our friends at FDIC. Look here:
One of the few ways of grading the branches. Interesting to note that:
-43 FL branches have a total of $542,561,000
-14 NY branches in Schenectady County have $894,184,000
-Saratoga Rd, Schenectady County, has $152,158,000
-18 NY branches in Albany County have $907,252,000
-2 NJ branches have $36,073,000
Possibly TRST management stopped at the Chili's on Rte 17 near Ramsey, NJ, while driving to FL, and said, wow, what a great location for a branch. Perhaps if they had stayed on I 287, none of this would have happened.
The loss reserves were very small for states other than Florida. Florida reserves were 10 times that of other states. Their secondary issuance info disclosed it. Prior to that they didnt want to disclose. IN general all banks are going to hurt for a while. If the economy tanks all banks will suffer further. They should have stayed out of New Jersey, thats a tough market, and that area needs to be a hands on environment. Maybe their accountant suggested operating in Jersey.
trustco if florida gave better deals to get business....they lowered rates and took the people the others wouldnt...they had no choice if they were to enter a new market....just look what happens when a new shopping center opens...they give crap away ...trustco is holding alot of unproductive loans from capital district ...no jersy...westchester...and florida....they dont speak b/c there isnt anything good to report...wake up fool
Since the Florida and NJ locations have the lowest average deposit per branch it looks like their growth strategy was not successful. I dont know what is an acceptable average branch deposit total for the sector. What would you consider an average branch deposit that would make the branch profitable for the buiness. If Cush would respond we would appreciate it.
In the 1990's it was easy to get to break even. It was as little as $10 million in deposits and they could claim break even. I suspect that the foreclosure risk is the real problem.
Albany area should be fine. Even with some defaults there were sufficient down payments and the market was not as over valued at the peak as Florida and other regions.
They'll be fine, but a bit more transparency would be appreciated.
Remember Big Mac came out of M&T a million years ago and speculation was that we would eventually sell to them.
I couldn't presume to say what an acceptable branch deposit total would be. Two points come to mind. It's unfortunate that management can't share more information with us about how the bank is doing, and, it seems possible that the farther away from their core region the bank gets, the lower their success rate is. As to the first point, maybe having a lot of money on deposit doesn't make a big difference. If people are borrowing money in Florida and NJ, and money from Rte 50 in Glenville is flowing to supply this money, maybe it's all OK. Perhaps having a lot of money on deposit and being successful in lending aren't necessarily mutually dependent. Also, perhaps being in the money lending business in Florida isn't a great idea.