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TrustCo Reports Historic Performance – Past and Present; Net Income of $17.9 Million up 24% over the Prior Year Quarter

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TrustCo Bank Corp NY
TrustCo Bank Corp NY

GLENVILLE, N.Y., July 21, 2022 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2022 net income of $17.9 million or $0.933 diluted earnings per share, compared to net income of $14.4 million or $0.748 diluted earnings per share for the second quarter 2021; and net income of $35.0 million or $1.822 diluted earnings per share for the six months ended June 30, 2022, compared to net income of $28.5 million or $1.478 diluted earnings per share for the six months ended June 30, 2021.

Overview

Noting that Trustco Bank marked its 120th year serving the community this June by ringing Nasdaq’s opening bell on June 13, 2022, Robert J. McCormick, Chairman, President and Chief Executive Officer said “The long-sustained success and strong financial performance of TrustCo Bank Corp NY truly is something to be celebrated. With events from Times Square in New York City to our historic main office in Schenectady, New York, this quarter we have honored the leaders that came before us building not just a strong bank, but enduring community bonds, and touted our strategic plan for weathering a low interest rate environment. We are very pleased to report today that these efforts have culminated in another quarter of record earnings and very positive loan growth.”

Details

Average loans were up $196.2 million or 4.6% in the second quarter 2022 over the same period in 2021. Average residential loans, our primary lending focus, were up $202.0 million, or 5.3%, in the second quarter 2022 over the same period in 2021. Average deposits were up $153.1 million or 2.9% for the second quarter 2022 over the same period a year earlier. The increase in deposits was the result of a $382.6 million or 9.5% 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 $229.5 million or 19.2%, for the second quarter 2022 over the same period in 2021. Within the core deposits, checking balances were up $152.0 million or 8.0% (including interest bearing and non-interest bearing checking balances), money market balances were up $48.7 million or 6.7%, and savings balances were up $181.9 million or 13.2%. 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 continue 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 0.10% in the second quarter 2022 from 0.17% in the second quarter 2021. A significant portion of our CD portfolio (time deposits) repriced during the last year while interest rates remained low; however, the Bank is monitoring the recent Federal Funds target rate increases, and the effects it is having on deposit rates as we move forward. Continued increases in rates by the Federal Reserve Board will more than likely cause an increase in rates of interest bearing liabilities. The net interest margin for the second quarter 2022 was 2.83%, up 13 basis points from 2.70% in the second quarter of 2021. This was primarily also due to the recent increase in the Federal Funds target rate, resulting in more interest earned on our short-term funds.

The Bank continued to demonstrate its ability to grow shareholders’ equity as average equity was up $17.7 million or 3.1% in the second quarter of 2022 compared to the same period in 2021. Return on average assets and return on average equity for the second quarter 2022 were 1.15% and 12.08%, respectively, an increase as compared to 0.95% and 10.05% for the second quarter 2021. Improving efficiencies to reduce costs continues to remain a key area of focus. Salaries and benefits expense increased approximately $2.2 million over the prior quarter due to a true-up to the incentive compensation accrual in the prior quarter. Salaries and benefits expense has returned to historical levels in the second quarter of 2022. The efficiency ratio was 51.97 for the second quarter 2022, a decrease as compared to 56.91 for the second quarter 2021. The Bank also purchased 75 thousand shares of stock under the previously announced Stock Repurchase Plan.
  
Asset quality and loan loss reserve measures have stayed consistent. Nonperforming loans (NPLs) were $18.7 million at June 30, 2022, compared to $20.8 million at June 30, 2021. NPLs were 0.41% and 0.48% of total loans at June 30, 2022 and 2021, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 242.0% at June 30, 2022, compared to 240.9% at June 30, 2021. Nonperforming assets (NPAs) were $19.4 million at June 30, 2022, compared to $21.1 million at June 30, 2021. As mentioned in the prior quarter, the Company adopted Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”) effective January 1, 2022. TrustCo recorded a net decrease to retained earnings of $3.5 million upon adoption of the new accounting standard. The transition adjustment at January 1, 2022 included a $2.4 million increase in the allowance for credit losses on loans, a $2.3 million increase in the allowance for estimated credit losses on unfunded off-balance sheet credit exposures, and a corresponding increase in deferred tax assets of $1.2 million. The Company recorded a credit to provision for credit losses of $491 thousand, which includes a credit to provision for credit losses on loans of $1.0 million as a result of improving unemployment and housing price forecasts, offset by a provision for credit losses on unfunded commitments of $509 thousand as a result of a corresponding increase in unfunded loan commitments. The ratio of allowance for credit losses on loans to total loans was 1.00% and 1.15% as of June 30, 2022 and 2021, respectively. The allowance for credit losses on loans was $45.3 million at June 30, 2022, compared to $50.2 million at June 30, 2021.

Net recoveries for the second quarter 2022 were $107 thousand versus net recoveries in the second quarter 2021 of $164 thousand. The annualized net recoveries ratio was (0.01)% and (0.02)% for the second quarter 2022 and 2021, respectively.

At June 30, 2022 the equity to asset ratio was 9.55%, compared to 9.45% at June 30, 2021. Book value per share at June 30, 2022 was $31.06, up 3.5% compared to $30.00 a year earlier.

TrustCo Bank Corp NY is a $6.2 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 144 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2022.

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 2022 results will be held at 9:00 a.m. Eastern Time on July 22, 2022. Those wishing to participate in the call may dial toll-free for the United States at 1-844-200-6205, for Canada at 1-833-950-0062, and all other locations at 1-929-526-1599, Access code 005124. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, for Canada at 1-226-828-7578, and all other locations at +44-204-525-0658, Access code 575732. The call will also be audio webcast at https://events.q4inc.com/attendee/221175934, 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 2022, 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 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 and macroeconomic or geopolitical concerns related to inflation, rising interest rates and the war in Ukraine. 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 effects of inflation and inflationary pressures and changes in monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; the impact of the actions taken by governmental authorities to contain the COVID-19 pandemic or address the impact of the pandemic 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; changes in and uncertainty related to benchmark interest rates used to price loans and deposits; future business strategies related to the implementation of CECL; credit risks and risks from concentrations (by geographic area and by loan product) within our loan portfolio; changes in local market areas and general business and economic trends, as well as changes in consumer spending and savings habits; and our ability to assess and react effectively to such changes; 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; 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; 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; 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

 

 

6/30/2022

 

3/31/2022

 

6/30/2021

Summary of operations

 

 

 

 

 

 

Net interest income (TE)

$

43,060

 

 

40,096

 

 

40,122

 

(Credit) Provision for credit losses

 

(491

)

 

(200

)

 

-

 

Noninterest income

 

4,916

 

 

5,183

 

 

4,688

 

Noninterest expense

 

25,005

 

 

22,765

 

 

25,440

 

Net income

 

17,871

 

 

17,089

 

 

14,433

 

 

 

 

 

 

 

 

Per share

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

- Basic

$

0.933

 

 

0.890

 

 

0.749

 

- Diluted

 

0.933

 

 

0.890

 

 

0.748

 

Cash dividends

 

0.350

 

 

0.350

 

 

0.341

 

Book value at period end

 

31.06

 

 

30.85

 

 

30.00

 

Market price at period end

 

30.84

 

 

31.93

 

 

34.38

 

 

 

 

 

 

 

 

At period end

 

 

 

 

 

 

Full time equivalent employees

 

793

 

 

769

 

 

769

 

Full service banking offices

 

144

 

 

144

 

 

147

 

 

 

 

 

 

 

 

Performance ratios

 

 

 

 

 

 

Return on average assets

 

1.15

 

%

1.12

 

 

0.95

 

Return on average equity

 

12.08

 

 

11.60

 

 

10.05

 

Efficiency (1)

 

51.97

 

 

50.55

 

 

56.91

 

Net interest spread (TE)

 

2.80

 

 

2.63

 

 

2.66

 

Net interest margin (TE)

 

2.83

 

 

2.66

 

 

2.70

 

Dividend payout ratio

 

37.46

 

 

39.36

 

 

45.51

 

 

 

 

 

 

 

 

Capital ratios at period end

 

 

 

 

 

 

Consolidated tangible equity to tangible assets (2)

 

9.54

 

%

9.43

 

 

9.44

 

Consolidated equity to assets

 

9.55

 

%

9.44

 

 

9.45

 

 

 

 

 

 

 

 

Asset quality analysis at period end

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.41

 

 

0.43

 

 

0.48

 

Nonperforming assets to total assets

 

0.31

 

 

0.31

 

 

0.34

 

Allowance for credit losses on loans to total loans

 

1.00

 

 

1.03

 

 

1.15

 

Coverage ratio (3)

 

2.4x

 

 

2.4x

 

 

2.4x

 

 

 

 

 

 

 

 

(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 credit losses on loans divided by total nonperforming loans.

 

 

 

 

 

 

 

TE = Taxable equivalent


FINANCIAL HIGHLIGHTS, Continued

 

(dollars in thousands, except per share data)

(Unaudited)

 

Six months ended

 

 

06/30/22

 

06/30/21

Summary of operations

 

 

 

 

Net interest income (TE)

$

83,156

 

 

80,229

 

(Credit) Provision for credit losses

 

(691

)

 

350

 

Noninterest income

 

10,099

 

 

9,116

 

Noninterest expense

 

47,770

 

 

50,775

 

Net income

 

34,960

 

 

28,516

 

 

 

 

 

 

Per share

 

 

 

 

Net income per share:

 

 

 

 

- Basic

$

1.822

 

 

1.479

 

- Diluted

 

1.822

 

 

1.478

 

Cash dividends

 

0.700

 

 

0.681

 

Book value at period end

 

31.06

 

 

30.00

 

Market price at period end

 

30.84

 

 

34.38

 

 

 

 

 

 

Performance ratios

 

 

 

 

Return on average assets

 

1.13

 

 

0.96

 

Return on average equity

 

11.84

 

 

10.03

 

Efficiency (1)

 

51.28

 

 

56.63

 

Net interest spread (TE)

 

2.72

 

 

2.70

 

Net interest margin (TE)

 

2.74

 

 

2.74

 

Dividend payout ratio

 

38.39

 

 

46.07

 

 

 

 

 

 

(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.

 

 

 

 

 

TE = Taxable equivalent.


CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

39,604

 

 

39,003

 

 

39,655

 

 

39,488

 

 

39,808

 

Interest and dividends on securities available for sale:

 

 

 

 

 

 

 

 

 

 

U. S. government sponsored enterprises

 

147

 

 

86

 

 

76

 

 

91

 

 

97

 

State and political subdivisions

 

-

 

 

1

 

 

-

 

 

1

 

 

-

 

Mortgage-backed securities and collateralized mortgage

 

 

 

 

 

 

 

 

 

 

obligations - residential

 

1,367

 

 

1,087

 

 

1,073

 

 

1,038

 

 

1,167

 

Corporate bonds

 

522

 

 

233

 

 

206

 

 

220

 

 

323

 

Small Business Administration - guaranteed

 

 

 

 

 

 

 

 

 

 

participation securities

 

140

 

 

154

 

 

165

 

 

181

 

 

193

 

Other securities

 

2

 

 

2

 

 

4

 

 

5

 

 

5

 

Total interest and dividends on securities available for sale

 

2,178

 

 

1,563

 

 

1,524

 

 

1,536

 

 

1,785

 

 

 

 

 

 

 

 

 

 

 

 

Interest on held to maturity securities:

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities and collateralized mortgage

 

 

 

 

 

 

 

 

 

 

obligations - residential

 

87

 

 

90

 

 

97

 

 

104

 

 

111

 

Total interest on held to maturity securities

 

87

 

 

90

 

 

97

 

 

104

 

 

111

 

 

 

 

 

 

 

 

 

 

 

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

65

 

 

62

 

 

62

 

 

64

 

 

65

 

 

 

 

 

 

 

 

 

 

 

 

Interest on federal funds sold and other short-term investments

 

2,253

 

 

572

 

 

432

 

 

470

 

 

286

 

Total interest income

 

44,187

 

 

41,290

 

 

41,770

 

 

41,662

 

 

42,055

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking

 

42

 

 

44

 

 

42

 

 

38

 

 

46

 

Savings

 

163

 

 

156

 

 

149

 

 

154

 

 

162

 

Money market deposit accounts

 

210

 

 

214

 

 

201

 

 

202

 

 

236

 

Time deposits

 

536

 

 

546

 

 

865

 

 

1,149

 

 

1,261

 

Interest on short-term borrowings

 

176

 

 

234

 

 

221

 

 

232

 

 

228

 

Total interest expense

 

1,127

 

 

1,194

 

 

1,478

 

 

1,775

 

 

1,933

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

43,060

 

 

40,096

 

 

40,292

 

 

39,887

 

 

40,122

 

 

 

 

 

 

 

 

 

 

 

 

Less: (Credit) Provision for credit losses

 

(491

)

 

(200

)

 

(3,000

)

 

(2,800

)

 

-

 

Net interest income after provision for loan losses

 

43,551

 

 

40,296

 

 

43,292

 

 

42,687

 

 

40,122

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Trustco Financial Services income

 

1,996

 

 

1,833

 

 

1,766

 

 

1,558

 

 

1,999

 

Fees for services to customers

 

2,658

 

 

2,801

 

 

2,578

 

 

2,531

 

 

2,486

 

Other

 

262

 

 

549

 

 

182

 

 

206

 

 

203

 

Total noninterest income

 

4,916

 

 

5,183

 

 

4,526

 

 

4,295

 

 

4,688

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

11,464

 

 

9,239

 

 

11,984

 

 

11,909

 

 

12,403

 

Net occupancy expense

 

4,254

 

 

4,529

 

 

4,569

 

 

4,259

 

 

4,328

 

Equipment expense

 

1,667

 

 

1,588

 

 

1,758

 

 

1,628

 

 

1,600

 

Professional services

 

1,484

 

 

1,467

 

 

1,579

 

 

1,483

 

 

1,614

 

Outsourced services

 

2,500

 

 

2,280

 

 

1,950

 

 

2,015

 

 

2,169

 

Advertising expense

 

389

 

 

617

 

 

762

 

 

310

 

 

549

 

FDIC and other insurance

 

804

 

 

812

 

 

780

 

 

746

 

 

777

 

Other real estate expense (income), net

 

74

 

 

11

 

 

(28

)

 

32

 

 

(60

)

Other

 

2,369

 

 

2,222

 

 

2,836

 

 

2,315

 

 

2,060

 

Total noninterest expenses

 

25,005

 

 

22,765

 

 

26,190

 

 

24,697

 

 

25,440

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

23,462

 

 

22,714

 

 

21,628

 

 

22,285

 

 

19,370

 

Income taxes

 

5,591

 

 

5,625

 

 

5,387

 

 

5,523

 

 

4,937

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

17,871

 

 

17,089

 

 

16,241

 

 

16,762

 

 

14,433

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

- Basic

$

0.933

 

 

0.890

 

 

0.845

 

 

0.871

 

 

0.749

 

 

 

 

 

 

 

 

 

 

 

 

- Diluted

 

0.933

 

 

0.890

 

 

0.845

 

 

0.871

 

 

0.748

 

 

 

 

 

 

 

 

 

 

 

 

Average basic shares (in thousands)

 

19,152

 

 

19,209

 

 

19,216

 

 

19,249

 

 

19,281

 

Average diluted shares (in thousands)

 

19,153

 

 

19,210

 

 

19,218

 

 

19,252

 

 

19,290

 

 

 

 

 

 

 

 

 

 

 

 

Note:  Taxable equivalent net interest income

$

43,060

 

 

40,096

 

 

40,292

 

 

39,888

 

 

40,122

 

 

 

 

 

 

 

 

 

 

 

 


CONSOLIDATED STATEMENTS OF INCOME, Continued

 

(dollars in thousands, except per share data)

(Unaudited)

 

 

Six months ended

 

 

06/30/22

 

06/30/21

Interest and dividend income:

 

 

 

 

Interest and fees on loans

$

78,607

 

 

80,025

 

Interest and dividends on securities available for sale:

 

 

 

 

U. S. government sponsored enterprises

 

233

 

 

147

 

State and political subdivisions

 

1

 

 

1

 

Mortgage-backed securities and collateralized mortgage

 

 

 

 

obligations - residential

 

2,454

 

 

2,404

 

Corporate bonds

 

755

 

 

639

 

Small Business Administration - guaranteed

 

 

 

 

participation securities

 

294

 

 

399

 

Other securities

 

4

 

 

11

 

Total interest and dividends on securities available for sale

 

3,741

 

 

3,601

 

 

 

 

 

 

Interest on held to maturity securities:

 

 

 

 

Mortgage-backed securities-residential

 

177

 

 

234

 

Total interest on held to maturity securities

 

177

 

 

234

 

 

 

 

 

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

127

 

 

134

 

 

 

 

 

 

Interest on federal funds sold and other short-term investments

 

2,825

 

 

556

 

Total interest income

 

85,477

 

 

84,550

 

 

 

 

 

 

Interest expense:

 

 

 

 

Interest on deposits:

 

 

 

 

Interest-bearing checking

 

86

 

 

98

 

Savings

 

319

 

 

321

 

Money market deposit accounts

 

424

 

 

519

 

Time deposits

 

1,082

 

 

2,927

 

Interest on short-term borrowings

 

410

 

 

456

 

Total interest expense

 

2,321

 

 

4,321

 

 

 

 

 

 

Net interest income

 

83,156

 

 

80,229

 

 

 

 

 

 

Less: (Credit) Provision for credit losses

 

(691

)

 

350

 

Net interest income after provision for loan losses

 

83,847

 

 

79,879

 

 

 

 

 

 

Noninterest income:

 

 

 

 

Trustco Financial Services income

 

3,829

 

 

4,034

 

Fees for services to customers

 

5,459

 

 

4,690

 

Other

 

811

 

 

392

 

Total noninterest income

 

10,099

 

 

9,116

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

Salaries and employee benefits

 

20,703

 

 

24,828

 

Net occupancy expense

 

8,783

 

 

8,914

 

Equipment expense

 

3,255

 

 

3,231

 

Professional services

 

2,951

 

 

3,046

 

Outsourced services

 

4,780

 

 

4,419

 

Advertising expense

 

1,006

 

 

903

 

FDIC and other insurance

 

1,616

 

 

1,484

 

Other real estate expense, net

 

85

 

 

179

 

Other

 

4,591

 

 

3,771

 

Total noninterest expenses

 

47,770

 

 

50,775

 

 

 

 

 

 

Income before taxes

 

46,176

 

 

38,220

 

Income taxes

 

11,216

 

 

9,704

 

 

 

 

 

 

Net income

$

34,960

 

 

28,516

 

 

 

 

 

 

Net income per common share:

 

 

 

 

- Basic

$

1.822

 

 

1.479

 

 

 

 

 

 

- Diluted

 

1.822

 

 

1.478

 

 

 

 

 

 

Average basic shares (in thousands)

 

19,184

 

 

19,284

 

Average diluted shares (in thousands)

 

19,185

 

 

19,292

 

 

 

 

 

 

Note: Taxable equivalent net interest income

$

83,156

 

 

80,229

 

 

 

 

 

 


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

(dollars in thousands)

(Unaudited)

 

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

46,611

 

 

47,526

 

 

48,357

 

 

45,486

 

 

47,766

 

Federal funds sold and other short term investments

 

999,573

 

 

1,225,022

 

 

1,171,113

 

 

1,147,853

 

 

1,134,622

 

Total cash and cash equivalents

 

1,046,184

 

 

1,272,548

 

 

1,219,470

 

 

1,193,339

 

 

1,182,388

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

U. S. government sponsored enterprises

 

101,100

 

 

62,059

 

 

59,179

 

 

59,749

 

 

74,579

 

States and political subdivisions

 

41

 

 

41

 

 

41

 

 

48

 

 

48

 

Mortgage-backed securities and collateralized mortgage

 

 

 

 

 

 

 

 

 

 

obligations - residential

 

287,450

 

 

244,045

 

 

270,798

 

 

293,585

 

 

315,656

 

Small Business Administration - guaranteed

 

 

 

 

 

 

 

 

 

 

participation securities

 

25,428

 

 

28,086

 

 

31,674

 

 

34,569

 

 

37,199

 

Corporate bonds

 

87,740

 

 

74,089

 

 

45,337

 

 

45,915

 

 

54,647

 

Other securities

 

656

 

 

671

 

 

684

 

 

686

 

 

686

 

Total securities available for sale

 

502,415

 

 

408,991

 

 

407,713

 

 

434,552

 

 

482,815

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities:

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities and collateralized mortgage

 

 

 

 

 

 

 

 

 

 

obligations-residential

 

8,544

 

 

9,183

 

 

9,923

 

 

10,701

 

 

11,665

 

Total held to maturity securities

 

8,544

 

 

9,183

 

 

9,923

 

 

10,701

 

 

11,665

 

 

 

 

 

 

 

 

 

 

 

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

5,797

 

 

5,604

 

 

5,604

 

 

5,604

 

 

5,604

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

Commercial

 

199,886

 

 

192,408

 

 

200,200

 

 

204,679

 

 

214,164

 

Residential mortgage loans

 

4,076,657

 

 

4,026,434

 

 

3,998,187

 

 

3,951,285

 

 

3,892,351

 

Home equity line of credit

 

253,758

 

 

236,117

 

 

230,976

 

 

231,314

 

 

234,214

 

Installment loans

 

10,258

 

 

9,395

 

 

9,416

 

 

9,451

 

 

8,638

 

Loans, net of deferred net costs

 

4,540,559

 

 

4,464,354

 

 

4,438,779

 

 

4,396,729

 

 

4,349,367

 

 

 

 

 

 

 

 

 

 

 

 

Less: Allowance for credit losses on loans

 

45,285

 

 

46,178

 

 

44,267

 

 

47,350

 

 

50,155

 

Net loans

 

4,495,274

 

 

4,418,176

 

 

4,394,512

 

 

4,349,379

 

 

4,299,212

 

 

 

 

 

 

 

 

 

 

 

 

Bank premises and equipment, net

 

32,381

 

 

32,644

 

 

33,027

 

 

33,233

 

 

33,691

 

Operating lease right-of-use assets

 

47,343

 

 

48,569

 

 

48,090

 

 

45,836

 

 

45,825

 

Other assets

 

88,853

 

 

86,158

 

 

78,207

 

 

62,191

 

 

61,378

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

6,226,791

 

 

6,281,873

 

 

6,196,546

 

 

6,134,835

 

 

6,122,578

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Demand

$

851,573

 

 

835,281

 

 

794,878

 

 

790,663

 

 

765,193

 

Interest-bearing checking

 

1,208,159

 

 

1,225,093

 

 

1,191,304

 

 

1,148,593

 

 

1,152,901

 

Savings accounts

 

1,577,034

 

 

1,553,152

 

 

1,504,554

 

 

1,433,130

 

 

1,409,556

 

Money market deposit accounts

 

760,338

 

 

796,275

 

 

782,079

 

 

744,051

 

 

732,963

 

Time deposits

 

999,737

 

 

940,215

 

 

995,314

 

 

1,124,581

 

 

1,169,907

 

Total deposits

 

5,396,841

 

 

5,350,016

 

 

5,268,129

 

 

5,241,018

 

 

5,230,520

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

147,282

 

 

248,371

 

 

244,686

 

 

230,770

 

 

237,791

 

Operating lease liabilities

 

51,777

 

 

53,094

 

 

52,720

 

 

50,515

 

 

50,586

 

Accrued expenses and other liabilities

 

36,259

 

 

37,497

 

 

29,883

 

 

25,849

 

 

25,088

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

5,632,159

 

 

5,688,978

 

 

5,595,418

 

 

5,548,152

 

 

5,543,985

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

 

Capital stock

 

20,046

 

 

20,046

 

 

20,046

 

 

20,042

 

 

20,041

 

Surplus

 

256,661

 

 

256,661

 

 

256,661

 

 

256,565

 

 

256,536

 

Undivided profits

 

367,100

 

 

355,948

 

 

349,056

 

 

339,554

 

 

329,350

 

Accumulated other comprehensive (loss) income, net of tax

 

(9,422

)

 

(2,369

)

 

12,147

 

 

7,304

 

 

7,840

 

Treasury stock at cost

 

(39,753

)

 

(37,391

)

 

(36,782

)

 

(36,782

)

 

(35,174

)

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

594,632

 

 

592,895

 

 

601,128

 

 

586,683

 

 

578,593