TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2024 net income of $12.6 million or $0.66 diluted earnings per share, compared to net income of $16.4 million or $0.86 diluted earnings per share for the second quarter 2023; and net income of $24.7 million or $1.30 diluted earnings per share for the six months ended June 30, 2024, compared to net income of $34.1 million or $1.79 diluted earnings per share for the six months ended June 30, 2023. Average loan growth increased $182.2 million or 3.8% for the second quarter 2024 over the same period in 2023.

During the second quarter of 2024, Visa Inc. accepted the Company’s tender of its 6,528 shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock. As a result of the exchange, the Company marked its Visa Class C common stock to fair value and recorded a gain of $1.4 million based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock on June 28, 2024 of $262.47 per share. The Company’s Visa Class C shares are expected to continue to be marked to fair value on a recurring basis using the Visa Class A shares as evidence of orderly transactions between market participants for similar securities issued by Visa. The Company originally obtained the shares in 2008. The strategic decision to retain those shares and not sell them sooner, allowed the Company to avoid commissions and other expenses thus recognizing the full market value. Further, it is anticipated that there could be future opportunities to exchange Class B-2 shares.

Overview

Chairman, President, and CEO, Robert J. McCormick said “Our success this quarter arises directly from our commitment to the core principles of Trustco Bank: competitive pricing and exceptional customer service. This clear mission focus enabled us to reach yet another milestone in our loan portfolio, as our residential, home equity, and commercial offerings all grew significantly over this time last year, reaching an all-time high for total loans. With all revenue streams producing, we realized a 4% increase in net income. By employing a sharp focus on loan pricing and resisting upward pressure on deposit rates, we realized a 3.7% increase in net interest margin. All this was accomplished as we not only maintained, but grew capital. In true Trustco fashion, credit quality remains stellar. We believe that this momentum positions us well for the remainder of the year.”

Details

Average loans were up $182.2 million or 3.8% in the second quarter 2024 over the same period in 2023. Average residential loans and home equity lines of credit, our primary lending focus, were up $89.9 million, or 2.1%, and $61.1 million, or 20.1%, respectively, in the second quarter 2024 over the same period in 2023. Average commercial loans also increased $31.5 million, or 12.7%, in the second quarter 2024 over the same period in 2023. Average deposits were up $77.4 million, or 1.5% for the second quarter 2024 over the same period in 2023. We believe the increase in time deposits compared to the prior year 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.

Net interest income was $37.8 million for the second quarter 2024, an increase of $1.2 million, or 3.3%, compared to the prior quarter, driven by loan growth at higher interest rates, an increase in interest on federal funds sold and other short-term investments, and lower cost of deposits, partially offset by lower investment earnings. The net interest margin for the second quarter 2024 was 2.53%, up 9 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.06%, up 7 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.97% in the second quarter 2024 from 1.99% in the first quarter 2024. The Bank has seen success in managing deposits by lowering the rates on time deposits and retaining deposit balances, while still being competitive in the markets we serve. The Federal Reserve’s decision regarding whether to cut or hold rates in the upcoming meetings will have an effect on our ability to continue to decrease deposit costs which should help margin in future quarters, and consequently, should bring down the cost of deposits over time. Non-interest expense increased $1.6 million over the prior quarter primarily as a result of higher salaries and employee benefits costs.

Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $500 thousand in the second quarter of 2024, which is the result of a provision for credit losses on loans of $500 thousand, and there was no change in unfunded commitments. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.96% as of June 30, 2024 and 2023, respectively. The allowance for credit losses on loans was $49.8 million at June 30, 2024, compared to $46.9 million at June 30, 2023. NPLs were $19.2 million at June 30, 2024, compared to $19.4 million at June 30, 2023. NPLs were 0.38% and 0.40% of total loans at June 30, 2024 and 2023, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 259.4% at June 30, 2024, compared to 241.6% at June 30, 2023. NPAs were $21.5 million at June 30, 2024, compared to $20.8 million at June 30, 2023.  

At June 30, 2024, our equity to asset ratio was 10.73%, compared to 10.23% at June 30, 2023. Book value per share at June 30, 2024 was $34.46, up 5.5% compared to $32.66 a year earlier.

A conference call to discuss second quarter 2024 results will be held at 9:00 a.m. Eastern Time on July 23, 2024. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 332275. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 270896. The call will also be audio webcast at https://events.q4inc.com/attendee/723112639, and will be available for one year.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2024.

In addition, the Bank’s Wealth Management 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.

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, 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 Russia/Ukraine conflict and the conflict in Israel and surrounding areas). 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: future changes in interest rates; ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; 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. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

Subsidiary: Trustco Bank

Contact: Robert LeonardExecutive Vice President(518) 381-3693
   
TRUSTCO BANK CORP NY        
GLENVILLE, NY        
         
FINANCIAL HIGHLIGHTS        
         
(dollars in thousands, except per share data)        
(Unaudited)        
    Three months ended        
    6/30/2024   3/31/2024     6/30/2023          
Summary of operations                    
Net interest income   $ 37,788    $ 36,578    $ 44,052              
Provision (Credit) for credit losses     500      600      (500 )        
Unrealized gains recognized on equity securities     1,360          -          
Noninterest income, excluding unrealized gains recognized on equity securities     4,291      4,843      4,598          
Noninterest expense     26,459      24,903      27,327          
Net income     12,551      12,126      16,372          
                     
Per share                    
Net income per share:                    
- Basic   $ 0.66    $ 0.64    $ 0.86         
- Diluted     0.66      0.64      0.86         
Cash dividends     0.36      0.36      0.36         
Book value at period end     34.46      34.12      32.66             
Market price at period end     28.77      28.16      28.61         
                     
At period end                    
Full time equivalent employees     753      761      791         
Full service banking offices     138      139      143         
                     
Performance ratios                    
Return on average assets     0.82  %   0.80  %   1.09  %      
Return on average equity     7.76      7.54      10.61         
Efficiency ratio (1)     62.84      59.94      55.87         
Net interest spread     2.09      2.00      2.74         
Net interest margin     2.53      2.44      2.98         
Dividend payout ratio     54.57      56.48      41.83             
                         
Capital ratios at period end                        
Consolidated equity to assets     10.73  %   10.51  %   10.23  %          
Consolidated tangible equity to tangible assets (2)     10.72  %   10.50  %   10.22  %      
                     
Asset quality analysis at period end                    
Nonperforming loans to total loans     0.38  %   0.37  %   0.40         
Nonperforming assets to total assets     0.35      0.33      0.34         
Allowance for credit losses on loans to total loans     0.99      0.98      0.96         
Coverage ratio (3)     2.6x     2.7x     2.4x        
                     
                     
(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding unrealized gains recognized on equity securities). See Non-GAAP Financial Measures Reconciliation.
(2) Non-GAAP measure; calculated as total shareholders' 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.        
                     
                     
FINANCIAL HIGHLIGHTS, Continued                
           
(dollars in thousands, except per share data)                    
(Unaudited)                    
    Six Months Ended            
      06/30/24       06/30/23              
Summary of operations                    
Net interest income $   74,366       91,017              
Provision (Credit) for credit losses     1,100       (200 )            
Unrealized gains recognized on equity securities     1,360       -              
Noninterest income, excluding unrealized gains recognized on equity securities     9,134       9,267              
Noninterest expense     51,362       55,006              
Net income     24,677       34,118              
                     
Per share                    
Net income per share:                    
- Basic $   1.30       1.79              
- Diluted     1.30       1.79              
Cash dividends     0.72       0.72              
Book value at period end     34.46       32.66              
Market price at period end     28.77       28.61              
                     
Performance ratios                    
Return on average assets     0.81   %   1.14              
Return on average equity     7.65       11.22                  
Efficiency ratio (1)     61.40       54.48                  
Net interest spread     2.05       2.90            
Net interest margin     2.48       3.10            
Dividend payout ratio     55.51       40.15                  
                         
(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable
equivalent net interest income plus noninterest income (excluding unrealized gains recognized on equity securities).
See Non-GAAP Financial Measures Reconciliation.
                     
                     
                     
                     
CONSOLIDATED STATEMENTS OF INCOME
                     
(dollars in thousands, except per share data)                    
(Unaudited)                    
    Three months ended
      6/30/2024       3/31/2024       12/31/2023       9/30/2023       6/30/2023  
Interest and dividend income:                    
Interest and fees on loans   $ 50,660     $ 49,804     $ 49,201     $ 47,921     $ 46,062  
Interest and dividends on securities available for sale:                    
U. S. government sponsored enterprises     909       906       750       672       691  
State and political subdivisions     1       -       1       -       1  
Mortgage-backed securities and collateralized mortgage                    
obligations - residential     1,451       1,494       1,533       1,485       1,543  
Corporate bonds     362       476       477       473       516  
Small Business Administration - guaranteed                    
participation securities     94       100       102       107       111  
Other securities     2       3       3       2       3  
Total interest and dividends on securities available for sale     2,819       2,979       2,866       2,739       2,865  
                     
Interest on held to maturity securities:                    
Mortgage-backed securities and collateralized mortgage                    
obligations - residential     65       68       70       73       75  
Total interest on held to maturity securities     65       68       70       73       75  
                     
Federal Home Loan Bank stock     147       152       149       131       110  
                     
Interest on federal funds sold and other short-term investments     6,894       6,750       6,354       6,688       6,970  
Total interest income     60,585       59,753       58,640       57,552       56,082  
                     
Interest expense:                    
Interest on deposits:                    
Interest-bearing checking     288       240       165       102       49  
Savings     675       712       707       639       655  
Money market deposit accounts     2,228       2,342       2,500       2,384       1,756  
Time deposits     19,400       19,677       16,460       11,962       9,291  
Interest on short-term borrowings     206       204       201       244       279  
Total interest expense     22,797       23,175       20,033       15,331       12,030  
                     
Net interest income     37,788       36,578       38,607       42,221       44,052  
                     
Less: Provision (Credit) for credit losses     500       600       1,350       100       (500 )
Net interest income after provision (credit) for credit losses     37,288       35,978       37,257       42,121       44,552  
                     
Noninterest income:                    
Trustco Financial Services income     1,609       1,816       1,612       1,627       1,412  
Fees for services to customers     2,399       2,745       2,563       2,590       2,847  
Unrealized gains recognized on equity securities     1,360       -       -       -       -  
Other     283       282       299       357       339  
Total noninterest income     5,651       4,843       4,474       4,574       4,598  
                     
Noninterest expenses:                    
Salaries and employee benefits     12,520       11,427       12,444       12,393       13,122  
Net occupancy expense     4,375       4,611       4,209       4,358       4,262  
Equipment expense     1,990       1,738       1,852       1,923       1,873  
Professional services     1,570       1,460       1,561       1,717       1,360  
Outsourced services     2,755       2,501       2,532       2,720       2,491  
Advertising expense     466       408       384       586       518  
FDIC and other insurance     797       1,094       1,085       1,078       1,085  
Other real estate expense (income), net     16       74       (12 )     163       148  
Other     1,970       1,590       4,776       2,522       2,468  
Total noninterest expenses     26,459       24,903       28,831       27,460       27,327  
                     
Income before taxes     16,480       15,918       12,900       19,235       21,823  
Income taxes     3,929       3,792       3,052       4,555       5,451  
                     
Net income   $ 12,551     $ 12,126     $ 9,848     $ 14,680     $ 16,372  
                     
Net income per common share:                    
- Basic   $ 0.66     $ 0.64     $ 0.52     $ 0.77     $ 0.86  
                     
- Diluted     0.66       0.64       0.52       0.77       0.86  
                     
Average basic shares (in thousands)     19,022       19,024       19,024       19,024       19,024  
Average diluted shares (in thousands)     19,033       19,032       19,026       19,024       19,024  
                     
                     
CONSOLIDATED STATEMENTS OF INCOME, Continued          
           
(dollars in thousands, except per share data)          
(Unaudited)          
    Six Months Ended            
      06/30/24       06/30/23              
Interest and dividend income:                        
Interest and fees on loans $   100,464       90,334                  
Interest and dividends on securities available for sale:                        
U. S. government sponsored enterprises     1,815       1,383                  
State and political subdivisions     1       1                      
Mortgage-backed securities and collateralized mortgage                        
obligations - residential     2,945       3,128                  
Corporate bonds     838       1,037                  
Small Business Administration - guaranteed                        
participation securities     194       228                  
Other securities     5       5                  
Total interest and dividends on securities available for sale     5,798       5,782                  
                     
Interest on held to maturity securities:                    
Mortgage-backed securities-residential     133       153                  
Total interest on held to maturity securities     133       153                  
                     
Federal Home Loan Bank stock     299       220                  
                     
Interest on federal funds sold and other short-term investments     13,644       13,525                  
Total interest income     120,338       110,014                  
                     
Interest expense:                    
Interest on deposits:                    
Interest-bearing checking     528       115                  
Savings     1,387       1,185                  
Money market deposit accounts     4,570       2,570                  
Time deposits     39,077       14,563                  
Interest on short-term borrowings     410       564                  
Total interest expense     45,972       18,997                  
                     
Net interest income     74,366       91,017                  
                     
Less: Provision (Credit) for credit losses     1,100       (200 )                
Net interest income after provision (credit) for credit losses     73,266       91,217                  
                     
Noninterest income:                    
Trustco Financial Services income     3,425       3,186                  
Fees for services to customers     5,144       5,495                  
Unrealized gains recognized on equity securities     1,360       -                  
Other     565       586                  
Total noninterest income     10,494       9,267                  
                     
Noninterest expenses:                    
Salaries and employee benefits     23,947       26,405                  
Net occupancy expense     8,986       8,860                  
Equipment expense     3,728       3,835                  
Professional services     3,030       2,967                  
Outsourced services     5,256       4,787                  
Advertising expense     874       908                  
FDIC and other insurance     1,891       2,137                  
Other real estate expense, net     90       373                  
Other     3,560       4,734                  
Total noninterest expenses     51,362       55,006                  
                     
Income before taxes     32,398       45,478                  
Income taxes     7,721       11,360                  
                     
Net income $   24,677       34,118                      
                         
Net income per common share:                    
- Basic $   1.30       1.79              
                     
- Diluted     1.30       1.79              
                     
Average basic shares (in thousands)     19,023       19,024              
Average diluted shares (in thousands)     19,033       19,025              
                     
                     
                     
                     
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
(dollars in thousands)
(Unaudited)
      6/30/2024       3/31/2024       12/31/2023       9/30/2023       6/30/2023  
ASSETS:                    
                     
Cash and due from banks   $ 42,193     $ 44,868     $ 49,274     $ 45,940     $ 55,662  
Federal funds sold and other short term investments     493,920       564,815       528,730       461,321       547,695  
Total cash and cash equivalents     536,113       609,683       578,004       507,261       603,357  
                   
Securities available for sale:                  
U. S. government sponsored enterprises     106,796       128,854       118,668       121,474       113,570  
States and political subdivisions     26       26       26       34       34  
Mortgage-backed securities and collateralized mortgage                  
obligations - residential     218,311       227,078       237,677       233,719       243,444  
Small Business Administration - guaranteed                    
participation securities     15,592       16,260       17,186       17,316       18,382  
Corporate bonds     53,764       53,341       78,052       76,935       76,618  
Other securities     688       682       680       657       656  
Total securities available for sale     395,177       426,241       452,289       450,135       452,704  
                     
Held to maturity securities:                    
Mortgage-backed securities and collateralized mortgage                    
obligations-residential     5,921       6,206       6,458       6,724       7,043  
Total held to maturity securities     5,921       6,206       6,458       6,724       7,043  
                     
Federal Reserve Bank and Federal Home Loan Bank stock     6,507       6,203       6,203       6,203       6,203  
                   
Loans:                  
Commercial     282,441       279,092       273,515       268,642       251,434  
Residential mortgage loans     4,370,640       4,354,369       4,365,063       4,343,006       4,310,005  
Home equity line of credit     370,063       355,879       347,415       332,028       308,976  
Installment loans     15,168       16,166       16,886       16,605       16,396  
Loans, net of deferred net costs     5,038,312       5,005,506       5,002,879       4,960,281       4,886,811  
                         
Less: Allowance for credit losses on loans     49,772       49,220       48,578       47,226       46,914  
Net loans     4,988,540       4,956,286       4,954,301       4,913,055       4,839,897  
                     
Bank premises and equipment, net     33,466       33,423       34,007       32,135       32,351  
Operating lease right-of-use assets     38,376       39,647       40,542       41,475       43,113  
Other assets     102,544       101,881       96,387       97,310       90,957  
                   
Total assets   $ 6,106,644     $ 6,179,570     $ 6,168,191     $ 6,054,298     $ 6,075,625  
                   
LIABILITIES:                  
Deposits:                  
Demand   $ 745,227     $ 742,997     $ 754,532     $ 773,293     $ 791,353  
Interest-bearing checking     1,029,606       1,020,136       1,015,213       1,033,898       1,082,989  
Savings accounts     1,144,427       1,155,517       1,179,241       1,235,658       1,315,893  
Money market deposit accounts     517,445       532,611       565,767       610,012       625,253  
Time deposits     1,840,262       1,903,908       1,836,024       1,581,504       1,442,959  
Total deposits     5,276,967       5,355,169       5,350,777       5,234,365       5,258,447  
                   
Short-term borrowings     89,720       94,374       88,990       103,110       113,765  
Operating lease liabilities     42,026       43,438       44,471       45,418       47,172  
Accrued expenses and other liabilities     42,763       37,399       38,668       47,479       34,852  
                   
Total liabilities     5,451,476       5,530,380       5,522,906       5,430,372       5,454,236  
                   
SHAREHOLDERS' EQUITY:                  
Capital stock     20,058       20,058       20,058       20,058       20,058  
Surplus     257,490       257,335       257,181       257,078       257,078  
Undivided profits     436,048       430,346       425,069       422,082       414,251  
Accumulated other comprehensive loss, net of tax     (14,268 )     (14,763 )     (13,237 )     (31,506 )     (26,212 )
Treasury stock at cost     (44,160 )     (43,786 )     (43,786 )     (43,786 )     (43,786 )
                   
Total shareholders' equity     655,168       649,190       645,285       623,926       621,389  
                     
Total liabilities and shareholders' equity   $ 6,106,644     $ 6,179,570     $ 6,168,191     $ 6,054,298     $ 6,075,625  
                     
Outstanding shares (in thousands)     19,010       19,024       19,024       19,024       19,024  
                     
NONPERFORMING ASSETS
             
(dollars in thousands)
(Unaudited)
      6/30/2024     3/31/2024     12/31/2023     9/30/2023     6/30/2023  
Nonperforming Assets            
             
   New York and other states*            
   Loans in nonaccrual status:            
       Commercial   $ 741   $ 532   $ 536   $ 540   $ 545  
       Real estate mortgage - 1 to 4 family     14,992     14,359     14,375     14,633     16,260  
       Installment     131     149     151     93     124  
   Total non-accrual loans     15,864     15,040     15,062     15,266     16,929  
   Other nonperforming real estate mortgages - 1 to 4 family     -     -     3     5     7  
   Total nonperforming loans     15,864     15,040     15,065     15,271     16,936  
   Other real estate owned     2,334     2,334     194     1,185     1,412  
   Total nonperforming assets   $ 18,198   $ 17,374   $ 15,259   $ 16,456   $ 18,348  
             
   Florida            
   Loans in nonaccrual status:            
       Commercial   $ 314   $ 314   $ 314   $ 314   $ 314  
       Real estate mortgage - 1 to 4 family     2,985     2,921     2,272     2,228     2,170  
       Installment     22     -     15     65     -  
   Total non-accrual loans     3,321     3,235     2,601     2,607     2,484  
   Other nonperforming real estate mortgages - 1 to 4 family     -     -     -     -     -  
   Total nonperforming loans     3,321     3,235     2,601     2,607     2,484  
   Other real estate owned     -     -     -     -     -  
   Total nonperforming assets   $ 3,321   $ 3,235   $ 2,601   $ 2,607   $ 2,484  
             
   Total            
   Loans in nonaccrual status:            
       Commercial   $ 1,055   $ 846   $ 850   $ 854   $ 859  
       Real estate mortgage - 1 to 4 family     17,977     17,280     16,647     16,861     18,430  
       Installment     153     149     166     158     124  
   Total non-accrual loans     19,185     18,275     17,663     17,873     19,413  
   Other nonperforming real estate mortgages - 1 to 4 family     -     -     3     5     7  
   Total nonperforming loans     19,185     18,275     17,666     17,878     19,420  
   Other real estate owned     2,334     2,334     194     1,185     1,412  
   Total nonperforming assets   $ 21,519   $ 20,609   $ 17,860   $ 19,063   $ 20,832  
             
             
Quarterly Net (Recoveries) Chargeoffs            
             
   New York and other states*            
   Commercial   $ -   $ -   $ -   $ -   $ (129 )
   Real estate mortgage - 1 to 4 family     (74 )   (78 )   219     (26 )   (161 )
   Installment     (2 )   36     23     14     21  
      Total net (recoveries) chargeoffs   $ (76 ) $ (42 ) $ 242   $ (12 ) $ (269 )
             
   Florida            
   Commercial   $ -   $ -   $ -   $ -   $ -  
   Real estate mortgage - 1 to 4 family     17     -     -     -     -  
   Installment     7     -     6     -     40  
      Total net (recoveries) chargeoffs   $ 24   $ -   $ 6   $ -   $ 40  
             
   Total            
   Commercial   $ -   $ -   $ -   $ -   $ (129 )
   Real estate mortgage - 1 to 4 family     (57 )   (78 )   219     (26 )   (161 )
   Installment     5     36     29     14     61  
      Total net (recoveries) chargeoffs   $ (52 ) $ (42 ) $ 248   $ (12 ) $ (229 )
             
             
Asset Quality Ratios            
             
Total nonperforming loans (1)   $ 19,185   $ 18,275   $ 17,666   $ 17,878   $ 19,420  
Total nonperforming assets (1)     21,519     20,609     17,860     19,063     20,832  
Total net (recoveries) chargeoffs (2)     (52 )   (42 )   248     (12 )   (229 )
             
Allowance for credit losses on loans (1)     49,772     49,220     48,578     47,226     46,914  
             
Nonperforming loans to total loans     0.38 %   0.37 %   0.35 %   0.36 %   0.40 %
Nonperforming assets to total assets     0.35 %   0.33 %   0.29 %   0.31 %   0.34 %
Allowance for credit losses on loans to total loans     0.99 %   0.98 %   0.97 %   0.95 %   0.96 %
Coverage ratio (1)     259.4 %   269.3 %   275.0 %   264.2 %   241.6 %
Annualized net (recoveries) chargeoffs to average loans (2)     0.00 %   0.00 %   0.02 %   0.00 %   -0.02 %
Allowance for credit losses on loans to annualized net chargeoffs (2)   N/A N/A 49.0x N/A N/A
 
* Includes New York, New Jersey, Vermont and Massachusetts.
(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  
    June 30, 2024     June 30, 2023  
    Average   Interest Average     Average   Interest Average  
    Balance     Rate     Balance     Rate  
Assets                        
                         
Securities available for sale:                        
   U. S. government sponsored enterprises   $ 113,844     $ 909 3.20 %   $ 120,646     $ 691 2.29 %
   Mortgage backed securities and collateralized mortgage                        
      obligations - residential     250,517       1,451 2.30       278,367       1,543 2.20  
   State and political subdivisions     26       1 6.75       34       1 6.74  
   Corporate bonds     55,065       362 2.63       85,344       516 2.42  
   Small Business Administration - guaranteed                        
      participation securities     17,436       94 2.15       20,724       111 2.15  
   Other     694       2 1.15       686       3 1.75  
                         
          Total securities available for sale     437,582       2,819 2.58       505,801       2,865 2.27  
                         
Federal funds sold and other short-term Investments     506,493       6,894 5.48       551,087       6,970 5.07  
                         
Held to maturity securities:                        
   Mortgage backed securities and collateralized mortgage                        
      obligations - residential     6,054       65 4.28       7,204       75 4.17  
                         
          Total held to maturity securities     6,054       65 4.28       7,204       75 4.17  
                         
Federal Home Loan Bank stock     6,340       147 9.27       5,868       110 7.50  
                         
Commercial loans     280,559       3,765 5.37       249,040       3,295 5.29  
Residential mortgage loans     4,359,232       40,819 3.75       4,269,295       37,992 3.56  
Home equity lines of credit     364,210       5,814 6.42       303,134       4,533 6.00  
Installment loans     15,395       262 6.86       15,734       242 6.16  
                         
Loans, net of unearned income     5,019,396       50,660 4.04       4,837,203       46,062 3.81  
                         
          Total interest earning assets     5,975,865     $ 60,585 4.06       5,907,163     $ 56,082 3.80  
                         
Allowance for credit losses on loans     (49,454 )             (47,060 )        
Cash & non-interest earning assets     181,688               172,821          
                         
                         
Total assets   $ 6,108,099             $ 6,032,924          
                         
                         
Liabilities and shareholders' equity                        
                         
Deposits:                        
  Interest bearing checking accounts   $ 1,009,048     $ 288 0.11 %   $ 1,083,795     $ 49 0.02 %
  Money market accounts     524,068       2,228 1.71       613,204       1,756 1.15  
  Savings     1,145,922       675 0.24       1,352,181       655 0.19  
  Time deposits     1,873,139       19,400 4.17       1,372,248       9,291 2.72  
                         
    Total interest bearing deposits     4,552,177       22,591 2.00       4,421,428       11,751 1.07  
Short-term borrowings     93,703       206 0.89       124,089       279 0.90  
                         
   Total interest bearing liabilities     4,645,880     $ 22,797 1.97       4,545,517     $ 12,030 1.06  
                         
Demand deposits     735,262               788,654          
Other liabilities     76,258               79,839          
Shareholders' equity     650,699               618,914          
                         
Total liabilities and shareholders' equity   $ 6,108,099             $ 6,032,924          
                         
Net interest income, GAAP and non-GAAP tax equivalent (1)       $ 37,788           $ 44,052    
                         
Net interest spread, GAAP and non-GAAP tax equivalent (1)         2.09 %         2.74 %
                         
                         
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)       2.53 %         2.98 %
                         
Tax equivalent adjustment (1)         -             -    
                         
                         
Net interest income       $ 37,788           $ 44,052    
                         
(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)   Six Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023  
    Average   Interest Average     Average   Interest Average  
    Balance     Rate     Balance     Rate  
Assets                        
                         
Securities available for sale:                        
   U. S. government sponsored enterprises $   119,908   $   1,815 3.03 % $   120,669   $   1,383 2.29 %
   Mortgage backed securities and collateralized mortgage                        
      obligations - residential     254,665       2,945 2.31       282,683       3,128 2.21  
   State and political subdivisions     26       1 6.82       34       1 6.74  
   Corporate bonds     64,345       838 2.60       85,460       1,037 2.43  
   Small Business Administration - guaranteed                        
      participation securities     17,830       194 2.18       21,423       228 2.13  
   Other     695       5 1.44       686       5 1.46  
                         
          Total securities available for sale     457,469       5,798 2.53       510,955       5,782 2.26  
                         
Federal funds sold and other short-term Investments     502,072       13,644 5.47       563,938       13,525 4.84  
                         
Held to maturity securities:                        
   Mortgage backed securities and collateralized mortgage                        
      obligations - residential     6,192       133 4.29       7,372       153 4.16  
                         
          Total held to maturity securities     6,192       133 4.29       7,372       153 4.16  
                         
Federal Home Loan Bank stock     6,271       299 9.54       5,833       220 7.54  
                         
Commercial loans     278,871       7,425 5.33       243,983       6,319 5.18  
Residential mortgage loans     4,359,351       81,236 3.73       4,241,207       74,906 3.54  
Home equity lines of credit     358,607       11,277 6.32       297,262       8,652 5.87  
Installment loans     15,761       526 6.72       14,535       457 6.35  
                         
Loans, net of unearned income     5,012,590       100,464 4.01       4,796,987       90,334 3.77  
                         
          Total interest earning assets     5,984,594   $   120,338 4.03       5,885,085   $   110,014 3.75  
                         
Allowance for credit losses on loans     (49,139 )             (46,677 )        
Cash & non-interest earning assets     188,364               173,990          
                         
                         
Total assets $   6,123,819           $   6,012,398          
                         
                         
Liabilities and shareholders' equity                        
                         
Deposits:                        
  Interest bearing checking accounts $   999,589       528 0.11 % $   1,108,452       115 0.02 %
  Money market accounts     534,378       4,570 1.72       607,064       2,570 0.85  
  Savings     1,152,241       1,387 0.24       1,403,924       1,185 0.17  
  Time deposits     1,881,535       39,077 4.18       1,267,193       14,563 2.32  
                         
   Total interest bearing deposits     4,567,743       45,562 2.01       4,386,633       18,433 0.85  
Short-term borrowings     93,510       410 0.88       127,957       564 0.89  
                         
   Total interest bearing liabilities     4,661,253   $   45,972 1.98       4,514,590   $   18,997 0.85  
                         
Demand deposits     730,781               802,533          
Other liabilities     83,105               81,954          
Shareholders' equity     648,680               613,321          
                         
Total liabilities and shareholders' equity $   6,123,819           $   6,012,398          
                         
Net interest income, GAAP and non-GAAP tax equivalent (1)     $   74,366         $   91,017    
                         
Net interest spread, GAAP and non-GAAP tax equivalent (1)         2.05 %         2.90 %
                         
                         
                         
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)       2.48 %         3.10 %
                         
Tax equivalent adjustment (1)         -             -    
                         
                         
Net interest income     $   74,366         $   91,017    
                         
(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, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, excluding unrealized gains recognized on equity securities. 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)              
    6/30/2024     3/31/2024     6/30/2023          
Tangible Book Value Per Share              
               
Equity (GAAP) $ 655,168   $ 649,190   $ 621,389          
Less: Intangible assets   553     553     553          
   Tangible equity (Non-GAAP) $ 654,615   $ 648,637   $ 620,836          
               
Shares outstanding   19,010     19,024     19,024          
Tangible book value per share   34.44     34.10     32.63          
Book value per share   34.46     34.12     32.66          
               
Tangible Equity to Tangible Assets              
Total Assets (GAAP) $ 6,106,644   $ 6,179,570   $ 6,075,625          
Less: Intangible assets   553     553     553          
   Tangible assets (Non-GAAP) $ 6,106,091   $ 6,179,017   $ 6,075,072          
               
Tangible Equity to Tangible Assets (Non-GAAP)   10.72 %   10.50 %   10.22 %        
Equity to Assets (GAAP)   10.73 %   10.51 %   10.23 %        
               
  Three months ended     Six Months Ended
Efficiency Ratio   6/30/2024     3/31/2024     6/30/2023         6/30/2024     6/30/2023  
               
Net interest income (GAAP) $ 37,788   $ 36,578   $ 44,052       $ 74,366   $ 91,017  
Taxable equivalent adjustment   -     -     -         -     -  
Net interest income (fully taxable equivalent) (Non-GAAP)   37,788     36,578     44,052         74,366     91,017  
Non-interest income (GAAP)   5,651     4,843     4,598         10,494     9,267  
Less: Unrealized gains recognized on equity securities   1,360     -     -         1,360     -  
Revenue used for efficiency ratio (Non-GAAP) $ 42,079   $ 41,421   $ 48,650       $ 83,500   $ 100,284  
               
Total noninterest expense (GAAP) $ 26,459   $ 24,903   $ 27,327       $ 51,362   $ 55,006  
Less: Other real estate expense, net   16     74     148         90     373  
Expense used for efficiency ratio (Non-GAAP) $ 26,443   $ 24,829   $ 27,179       $ 51,272   $ 54,633  
               
Efficiency Ratio   62.84 %   59.94 %   55.87 %       61.40 %   54.48 %
               
TrustCo Bank Corporation... (NASDAQ:TRST)
Historical Stock Chart
Von Nov 2024 bis Dez 2024 Click Here for more TrustCo Bank Corporation... Charts.
TrustCo Bank Corporation... (NASDAQ:TRST)
Historical Stock Chart
Von Dez 2023 bis Dez 2024 Click Here for more TrustCo Bank Corporation... Charts.