Executive Snapshot:
- Continued strong financial results:
- Core net income for first quarter 2015 compared to the same
period in 2014:
- Core net income up 6.7%;
- Core diluted EPS up 6.1%;
- GAAP earnings for the first quarter of 2015 compared to the
same period in 2014:
- Net income down 2.7%
- Diluted EPS down 2.6%
- Return on average assets (ROA) of 0.93%
- Return on average equity (ROE) of 10.91%
- Efficiency ratio of 54.18%
- Asset quality improvement:
- Asset quality measures continued to improve or remain stable as
compared to both the first quarter of 2014 and for the fourth
quarter of 2014
- Nonperforming assets (NPAs) fell by $13.5 million versus the
prior year
- NPAs to total assets improved from 1.18% to 0.85% over last
year
- Quarterly net chargeoffs at lowest level since the fourth
quarter of 2008
- Continued expansion of customer base:
- Focus on capitalizing on opportunities presented by expanded
branch network
- Average deposits per branch grew $868 thousand from March 31,
2014 to March 31, 2015 on a same store basis
- Average core deposits grew $80 million for the first quarter of
2015 compared to the first quarter of 2014
- Loan portfolio reaches all-time high:
- Average loans were up $250 million for the first quarter of
2015 compared to first quarter of 2014
- At $3.19 billion at March 31, 2015, loans reached an all-time
historic high
Note: See non-GAAP financial measures reconciliation on
pages 10-11 for information on core income and earnings per
share
TrustCo Announces First Quarter 2015
Earnings; Core Net Income Up 7%
GLENVILLE, N.Y., April 21, 2015 (GLOBE NEWSWIRE) --
TrustCo Bank Corp NY (TrustCo) (Nasdaq:TRST)
today announced that first quarter of 2015 core net income rose 7%
to $10.7 million compared to $10.0 million for the first quarter of
2014. First quarter 2014 results included the sale of a property
that added $965 thousand to reported after-tax earnings. Including
this sale, first quarter 2014 reported net income was $11.0 million
compared to $10.7 million in 2015.
Robert J. McCormick, President and Chief Executive Officer
noted, "Our core results for the first quarter of 2015 represent a
solid start to the new year. In addition to core net income growth,
we continued to add customer relationships which ultimately
positions our business well for the future. Our highly liquid
balance sheet continues to allow us to fund our loan growth without
having to overpay for deposits. We look forward to the balance of
2015 with optimism. We will continue taking advantage of
opportunities as they are presented."
TrustCo saw continued strong loan growth in the first quarter of
2015. The gains continue to be primarily funded by expansion of
retail deposits as well as proceeds from cash flow from the lower
yielding investment securities portfolios. The shift toward loans
helped offset part of the margin impact from continued
comparatively low yields on cash and investments. TrustCo's strong
liquidity position continues to allow the Company to take advantage
of opportunities when interest rate conditions change.
Mr. McCormick also noted, "We are encouraged by the continued
economic improvements in our market areas. We are pleased with the
continued improvement in our asset quality during both the first
quarter and over the last year. Our long-term focus on traditional
lending criteria and conservative balance sheet management has
enabled us to maintain strong liquidity and capital and report
continued profit improvements. As a result, we have been able to
focus on conducting business, which has significantly enhanced our
reputation and put us in a position to take advantage of changes in
market and competitive conditions."
For the first quarter of 2015, return on average assets and
return on average equity were 0.93% and 10.91%, respectively,
compared to 0.99% and 12.09% for the first quarter of 2014, all on
a reported GAAP basis. Higher levels of shareholders equity as well
as the one-time gain of $965 thousand noted earlier contributed to
the decline in return on average equity. Core diluted net income
per share were $0.113 for the first quarter of 2015, up 6.1% from
$0.106 for the first quarter of 2014. Reported GAAP earnings
per share were $0.113 for the first quarter of 2015, compared to
$0.116 for the first quarter of 2014.
Average loans were up $249.6 million or 8.5% in the first
quarter of 2015, over the same period in 2014. Average
deposits were up $120.6 million or 3.1% for the first quarter of
2015 over the same period a year earlier. Most of the gain in
deposits came from core deposit accounts. Average core
deposits increased $80.0 million from the first quarter of 2014 to
the first quarter of 2015. Core deposits typically represent
longer term customer relationships and are generally lower cost
than time deposits. Mr. McCormick noted that, "The
year-over-year growth of our loans and core deposit base reflect
the long term strategic focus of the Company.
While some banks have backed away from branches, a customer
friendly branch franchise continues to be the key to our long term
plans. We opened one new office during the first quarter, in
Orlando, Florida. We continue to make significant progress
expanding loans and deposits throughout our entire branch
network. We expect that trend to continue as the newer
branches continue to mature.
At March 31, 2015, our average branch size was $28.4
million. On a same store basis, our average deposits per
branch grew by $868 thousand from March 31, 2014 to March 31,
2015. We have always designed our branches to be smaller and
more cost effective than those built by many of our
competitors. We use open floor plans that help maximize the
value of our branches. We remain mindful that fully achieving
our goals for newer branches will take time and continued
work. We believe success in growing customer relationships
provides basic building blocks that will help drive profit growth
for the coming years."
Asset quality and the allowance for loan losses coverage of
nonperforming loans (NPLs) improved from both March 31, 2014 and
December 31, 2014 to March 31, 2015. NPLs declined to $33.5
million at March 31, 2015, compared to $44.9 million at March 31,
2014 and to $34.0 million at December 31, 2014. NPLs were
equal to 1.05% of total loans at March 31, 2015, compared to 1.53%
a year earlier and 1.08% at year-end. The coverage ratio, or
allowance for loan losses to NPLs, was 137.2% at March 31, 2015,
compared to 136.2% at December 31, 2014 and to 104.7% at March 31,
2014. Nonperforming assets (NPAs) declined to $40.4 million
from $40.5 million at December 31, 2014 and from $53.9 million at
March 31, 2014. Overall, virtually every asset quality
indicator improved during the first quarter of 2015 relative to the
fourth quarter of 2014 and to the first quarter of 2014. The
ratio of loan loss allowance to total loans was 1.44% as of March
31, 2015, compared to 1.47% at December 31, 2014 and to 1.60% at
March 31, 2014 and reflects both the improvement in asset quality
and economic conditions. The allowance for loan losses was
$45.9 million at March 31, 2015 compared to $46.3 million at the
end of 2014 and $47.0 million at March 31, 2014.
The net interest margin for the first quarter of 2015 was 3.08%,
compared to 3.13% in the first quarter of 2014.
At March 31, 2015 the tangible equity ratio was 8.44% compared
to 8.46% at December 31, 2014. Tangible book value per share
at March 31, 2015 was $4.21 compared to $3.93 a year earlier.
TrustCo Bank Corp NY is a $4.7 billion savings and loan holding
company and through its subsidiary, Trustco Bank, operated 145
offices in New York, New Jersey, Vermont, Massachusetts, and
Florida at March 31, 2015.
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 first quarter 2015 results will be
held at 9:00 a.m. Eastern Time on April 22, 2015. Those
wishing to participate in the call may dial toll-free
1-888-339-0764. International callers must dial
1-412-902-4195. Please ask to be joined into the TrustCo
Bank Corp NY / TRST call. A replay of the call will be
available for thirty days by dialing 1-877-344-7529 (1-412-317-0088
for international callers), Conference Number 10063957. The call
will also be audio webcast at:
http://services.choruscall.com/links/trst150422.html, and will be
available for one year.
Note: See non-GAAP financial measures
reconciliation on pages 10-11 for information on core income and
earnings per share
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 2015 and for 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. 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: 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; the future earnings and capital levels
of Trustco Bank and the continued ability of Trustco Bank under
regulatory rules to distribute capital to TrustCo, which could
affect our ability to pay dividends; our ability to make accurate
assumptions and judgments regarding the credit risks associated
with lending and investing activities; the effect of changes in
financial services laws and regulations and the impact of other
governmental initiatives affecting the financial services industry;
results of examinations of Trustco Bank and TrustCo by our
respective regulators; the effects of, and changes in, trade,
monetary and fiscal policies and laws, including interest rate
policies of the Federal Reserve Board, inflation, interest rates,
market and monetary fluctuations; 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; real estate and collateral
values; changes in accounting policies and practices, as may be
adopted by the bank regulatory agencies, the FASB or PCAOB; changes
in local market areas and general business and economic trends, as
well as changes in consumer spending and saving habits; our success
at managing the risks involved in the foregoing and managing our
business; and other risks and uncertainties under the heading "Risk
Factors" in our annual report on Form 10-K for the year ended
December 31, 2014, as amended, and, if any, in our subsequent
quarterly reports on Form 10-Q or other securities filings.
TRUSTCO BANK CORP NY |
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GLENVILLE, NY |
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FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
(dollars in thousands, except per share
data) |
|
|
|
(Unaudited) |
|
|
|
|
Three Months
Ended |
|
03/31/15 |
12/31/14 |
03/31/14 |
Summary of operations |
|
|
|
Net interest income (TE) |
$ 35,185 |
35,693 |
34,701 |
Provision for loan losses |
800 |
1,000 |
1,500 |
Net securities transactions |
249 |
335 |
6 |
Noninterest income, excluding net
securities transactions |
4,374 |
4,417 |
5,753 |
Noninterest expense |
21,857 |
22,240 |
20,801 |
Net income |
10,715 |
10,660 |
11,011 |
|
|
|
|
Per common share |
|
|
|
Net income per share: |
|
|
|
- Basic |
$ 0.113 |
0.113 |
0.116 |
- Diluted |
0.113 |
0.112 |
0.116 |
Cash dividends |
0.066 |
0.066 |
0.066 |
Tangible Book value at period end |
4.21 |
4.14 |
3.93 |
Market price at period end |
6.88 |
7.26 |
7.04 |
|
|
|
|
At period end |
|
|
|
Full time equivalent employees |
747 |
737 |
709 |
Full service banking offices |
145 |
144 |
139 |
|
|
|
|
Performance ratios |
|
|
|
Return on average assets |
0.93% |
0.92 |
0.99 |
Return on average equity |
10.91 |
10.70 |
12.09 |
Efficiency (1) |
54.18 |
53.35 |
51.28 |
Net interest spread (TE) |
3.02 |
3.11 |
3.08 |
Net interest margin (TE) |
3.08 |
3.17 |
3.13 |
Dividend payout ratio |
58.12 |
58.55 |
56.36 |
|
|
|
|
Capital ratio at period end |
|
|
|
Consolidated tangible equity to tangible
assets (2) |
8.44 |
8.46 |
8.11 |
|
|
|
|
Asset quality analysis at period end |
|
|
|
Nonperforming loans to total loans |
1.05 |
1.08 |
1.53 |
Nonperforming assets to total assets |
0.85 |
0.87 |
1.18 |
Allowance for loan losses to total
loans |
1.44 |
1.47 |
1.60 |
Coverage ratio (3) |
1.4x |
1.4 |
1.0 |
|
|
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|
(1) Calculated as
noninterest expense (excluding ORE income/expense) divided
by taxable equivalent net interest income plus noninterest
income (excluding net securities transactions, the net gain on sale
of building, and the net sale of nonperforming loans). |
(2) The tangible equity
ratio excludes $553 of intangibles from both equity and
assets. |
(3) Calculated as allowance
for loan losses divided by total nonperforming loans. |
|
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|
TE = Taxable equivalent. |
|
|
|
|
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CONSOLIDATED STATEMENTS OF
INCOME |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per
share data) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
|
|
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
Interest and dividend income: |
|
|
|
|
|
Interest and fees on loans |
$ 34,983 |
35,051 |
34,421 |
33,614 |
32,874 |
Interest and dividends on securities
available for sale: |
|
|
|
|
|
U. S. government sponsored
enterprises |
212 |
233 |
297 |
381 |
506 |
State and political
subdivisions |
25 |
29 |
38 |
44 |
68 |
Mortgage-backed securities and
collateralized mortgage obligations-residential |
2,393 |
2,733 |
3,040 |
3,299 |
3,078 |
Corporate bonds |
1 |
2 |
2 |
2 |
59 |
Small Business Administration-guaranteed
participation securities |
522 |
524 |
535 |
539 |
556 |
Mortgage-backed securities and
collateralized mortgage obligations-commercial |
37 |
37 |
38 |
38 |
38 |
Other securities |
4 |
4 |
4 |
4 |
4 |
Total interest and dividends on
securities available for sale |
3,194 |
3,562 |
3,954 |
4,307 |
4,309 |
|
|
|
|
|
|
Interest on held to maturity
securities: |
|
|
|
|
|
Mortgage-backed securities and
collateralized mortgage obligations-residential |
478 |
512 |
545 |
577 |
625 |
Corporate bonds |
154 |
154 |
153 |
154 |
154 |
Total interest on held to maturity
securities |
632 |
666 |
698 |
731 |
779 |
|
|
|
|
|
|
Federal Reserve Bank and Federal Home Loan
Bank stock |
116 |
123 |
127 |
128 |
133 |
|
|
|
|
|
|
Interest on federal funds sold and other
short-term investments |
400 |
363 |
374 |
376 |
351 |
Total interest income |
39,325 |
39,765 |
39,574 |
39,156 |
38,446 |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
Interest on deposits: |
|
|
|
|
|
Interest-bearing checking |
105 |
98 |
94 |
89 |
84 |
Savings |
658 |
663 |
644 |
592 |
763 |
Money market deposit accounts |
617 |
634 |
648 |
618 |
599 |
Time deposits |
2,434 |
2,366 |
2,213 |
2,035 |
1,951 |
Interest on short-term borrowings |
346 |
335 |
327 |
342 |
393 |
Total interest expense |
4,160 |
4,096 |
3,926 |
3,676 |
3,790 |
|
|
|
|
|
|
Net interest income |
35,165 |
35,669 |
35,648 |
35,480 |
34,656 |
|
|
|
|
|
|
Provision for loan losses |
800 |
1,000 |
1,100 |
1,500 |
1,500 |
Net interest income after provision for loan
losses |
34,365 |
34,669 |
34,548 |
33,980 |
33,156 |
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
Trustco Financial Services income |
1,653 |
1,451 |
1,471 |
1,405 |
1,510 |
Fees for services to customers |
2,524 |
2,753 |
2,838 |
2,732 |
2,521 |
Net gain on securities transactions |
249 |
335 |
376 |
-- |
6 |
Other |
197 |
213 |
205 |
368 |
1,722 |
Total noninterest income |
4,623 |
4,752 |
4,890 |
4,505 |
5,759 |
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
Salaries and employee benefits |
8,481 |
9,003 |
8,272 |
8,012 |
7,592 |
Net occupancy expense |
4,108 |
3,869 |
4,013 |
4,110 |
4,259 |
Equipment expense |
1,942 |
1,919 |
1,725 |
1,823 |
1,752 |
Professional services |
1,507 |
1,536 |
1,547 |
1,438 |
1,286 |
Outsourced services |
1,425 |
1,225 |
1,375 |
1,425 |
1,325 |
Advertising expense |
600 |
602 |
629 |
657 |
599 |
FDIC and other insurance |
1,065 |
949 |
1,054 |
1,000 |
904 |
Other real estate expense (income),
net |
424 |
841 |
1,001 |
(1,688) |
855 |
Other |
2,305 |
2,296 |
2,576 |
2,660 |
2,229 |
Total noninterest expenses |
21,857 |
22,240 |
22,192 |
19,437 |
20,801 |
|
|
|
|
|
|
Income before taxes |
17,131 |
17,181 |
17,246 |
19,048 |
18,114 |
Income taxes |
6,416 |
6,521 |
6,532 |
7,240 |
7,103 |
|
|
|
|
|
|
Net income |
$ 10,715 |
10,660 |
10,714 |
11,808 |
11,011 |
Net income per common share: |
|
|
|
|
|
- Basic |
$ 0.113 |
0.113 |
0.113 |
0.125 |
0.116 |
|
|
|
|
|
|
- Diluted |
0.113 |
0.112 |
0.113 |
0.125 |
0.116 |
|
|
|
|
|
|
Average basic shares (in thousands) |
94,947 |
94,681 |
94,628 |
94,559 |
94,452 |
Average diluted shares (in thousands) |
95,074 |
94,813 |
94,752 |
94,675 |
94,581 |
|
|
|
|
|
|
Note: Taxable equivalent net interest
income |
$ 35,185 |
35,693 |
35,676 |
35,513 |
34,701 |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ 44,853 |
43,505 |
43,724 |
48,034 |
46,127 |
Federal funds sold and other short term
investments |
705,273 |
627,943 |
586,931 |
573,514 |
687,003 |
Total cash and cash equivalents |
750,126 |
671,448 |
630,655 |
621,548 |
733,130 |
|
|
|
|
|
|
Securities available for sale: |
|
|
|
|
|
U. S. government sponsored
enterprises |
108,248 |
77,800 |
83,087 |
103,340 |
92,708 |
States and political subdivisions |
1,974 |
2,271 |
2,769 |
3,921 |
4,968 |
Mortgage-backed securities and
collateralized mortgage obligations-residential |
445,273 |
483,560 |
523,779 |
589,517 |
524,197 |
Corporate bonds |
1,500 |
1,500 |
1,401 |
1,402 |
6,402 |
Small Business Administration-guaranteed
participation securities |
98,668 |
100,496 |
100,491 |
102,367 |
101,821 |
Mortgage-backed securities and
collateralized mortgage obligations-commercial |
10,503 |
10,447 |
10,417 |
10,544 |
10,543 |
Other securities |
685 |
685 |
679 |
679 |
653 |
Total securities available for sale |
666,851 |
676,759 |
722,623 |
811,770 |
741,292 |
|
|
|
|
|
|
Held to maturity securities: |
|
|
|
|
|
Mortgage-backed securities and
collateralized mortgage obligations-residential |
57,296 |
60,986 |
64,223 |
67,974 |
72,188 |
Corporate bonds |
9,964 |
9,960 |
9,956 |
9,952 |
9,948 |
Total held to maturity securities |
67,260 |
70,946 |
74,179 |
77,926 |
82,136 |
|
|
|
|
|
|
Federal Reserve Bank and Federal Home Loan
Bank stock |
9,228 |
9,228 |
9,228 |
10,951 |
10,500 |
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial |
212,145 |
223,382 |
219,825 |
222,655 |
220,443 |
Residential mortgage loans |
2,620,925 |
2,575,222 |
2,510,151 |
2,437,500 |
2,374,874 |
Home equity line of credit |
352,552 |
352,134 |
346,496 |
339,897 |
339,971 |
Installment loans |
8,003 |
7,594 |
6,557 |
6,098 |
5,714 |
Loans, net of deferred fees and costs |
3,193,625 |
3,158,332 |
3,083,029 |
3,006,150 |
2,941,002 |
Less: |
|
|
|
|
|
Allowance for loan losses |
45,944 |
46,327 |
46,512 |
46,935 |
47,035 |
Net loans |
3,147,681 |
3,112,005 |
3,036,517 |
2,959,215 |
2,893,967 |
|
|
|
|
|
|
Bank premises and equipment, net |
38,812 |
38,565 |
37,455 |
36,658 |
35,267 |
Other assets |
60,698 |
65,488 |
71,609 |
71,061 |
82,445 |
|
|
|
|
|
|
Total assets |
$ 4,740,656 |
4,644,439 |
4,582,266 |
4,589,129 |
4,578,737 |
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Demand |
$ 347,315 |
331,425 |
327,527 |
324,277 |
327,779 |
Interest-bearing checking |
696,137 |
682,210 |
646,862 |
643,473 |
628,752 |
Savings accounts |
1,237,115 |
1,216,831 |
1,215,087 |
1,233,347 |
1,236,331 |
Money market deposit accounts |
640,368 |
638,542 |
655,646 |
651,367 |
648,244 |
Time deposits |
1,196,233 |
1,163,233 |
1,139,919 |
1,142,723 |
1,146,112 |
Total deposits |
4,117,168 |
4,032,241 |
3,985,041 |
3,995,187 |
3,987,218 |
|
|
|
|
|
|
Short-term borrowings |
194,738 |
189,116 |
179,957 |
181,516 |
195,411 |
Accrued expenses and other liabilities |
28,274 |
29,638 |
27,781 |
27,409 |
24,329 |
|
|
|
|
|
|
Total liabilities |
4,340,180 |
4,250,995 |
4,192,779 |
4,204,112 |
4,206,958 |
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
Capital stock |
98,964 |
98,945 |
98,942 |
98,927 |
98,927 |
Surplus |
172,237 |
172,353 |
172,598 |
172,769 |
172,964 |
Undivided profits |
171,232 |
166,745 |
162,326 |
157,832 |
152,237 |
Accumulated other comprehensive loss, net of
tax |
(2,687) |
(4,509) |
(3,508) |
(2,611) |
(9,452) |
Treasury stock at cost |
(39,270) |
(40,090) |
(40,871) |
(41,900) |
(42,897) |
|
|
|
|
|
|
Total shareholders' equity |
400,476 |
393,444 |
389,487 |
385,017 |
371,779 |
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
$ 4,740,656 |
4,644,439 |
4,582,266 |
4,589,129 |
4,578,737 |
|
|
|
|
|
|
Outstanding shares (in thousands) |
94,956 |
94,857 |
94,785 |
94,665 |
94,564 |
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
03/31/15 |
12/31/14 |
09/30/14 |
06/30/14 |
03/31/14 |
New York and other
states* |
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
Commercial |
$ 2,489 |
3,835 |
4,226 |
5,132 |
4,853 |
Real estate mortgage - 1 to 4 family |
28,215 |
27,221 |
29,736 |
31,433 |
34,597 |
Installment |
77 |
77 |
95 |
87 |
103 |
Total non-accrual loans |
30,781 |
31,133 |
34,057 |
36,652 |
39,553 |
Other nonperforming real estate mortgages - 1
to 4 family |
75 |
125 |
155 |
159 |
162 |
Total nonperforming loans |
30,856 |
31,258 |
34,212 |
36,811 |
39,715 |
Other real estate owned |
6,288 |
5,533 |
5,238 |
3,930 |
4,707 |
Total nonperforming assets |
$ 37,144 |
36,791 |
39,450 |
40,741 |
44,422 |
|
|
|
|
|
|
Florida |
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
Commercial |
$ -- |
-- |
517 |
517 |
517 |
Real estate mortgage - 1 to 4 family |
2,608 |
2,740 |
2,395 |
3,578 |
4,668 |
Installment |
20 |
13 |
1 |
1 |
7 |
Total non-accrual loans |
2,628 |
2,753 |
2,913 |
4,096 |
5,192 |
Other nonperforming real estate mortgages - 1
to 4 family |
-- |
-- |
-- |
-- |
-- |
Total nonperforming loans |
2,628 |
2,753 |
2,913 |
4,096 |
5,192 |
Other real estate owned |
670 |
908 |
1,188 |
4,365 |
4,300 |
Total nonperforming assets |
$ 3,298 |
3,661 |
4,101 |
8,461 |
9,492 |
|
|
|
|
|
|
Total |
|
|
|
|
|
Loans in nonaccrual status: |
|
|
|
|
|
Commercial |
$ 2,489 |
3,835 |
4,743 |
5,649 |
5,370 |
Real estate mortgage - 1 to 4 family |
30,823 |
29,961 |
32,131 |
35,011 |
39,265 |
Installment |
97 |
90 |
96 |
88 |
110 |
Total non-accrual loans |
33,409 |
33,886 |
36,970 |
40,748 |
44,745 |
Other nonperforming real estate mortgages - 1
to 4 family |
75 |
125 |
155 |
159 |
162 |
Total nonperforming loans |
33,484 |
34,011 |
37,125 |
40,907 |
44,907 |
Other real estate owned |
6,958 |
6,441 |
6,426 |
8,295 |
9,007 |
Total nonperforming assets |
$ 40,442 |
40,452 |
43,551 |
49,202 |
53,914 |
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net Chargeoffs
(Recoveries) |
|
|
|
|
|
|
03/31/15 |
12/31/14 |
09/30/14 |
06/30/14 |
03/31/14 |
New York and other
states* |
|
|
|
|
|
Commercial |
$ 34 |
(16) |
124 |
13 |
242 |
Real estate mortgage - 1 to 4 family |
1,004 |
1,591 |
1,105 |
1,496 |
851 |
Installment |
37 |
48 |
57 |
24 |
44 |
Total net chargeoffs |
$ 1,075 |
1,623 |
1,286 |
1,533 |
1,137 |
|
|
|
|
|
|
Florida |
|
|
|
|
|
Commercial |
$ (1) |
(476) |
(1) |
(2) |
612 |
Real estate mortgage - 1 to 4 family |
109 |
37 |
242 |
59 |
428 |
Installment |
-- |
1 |
(4) |
10 |
2 |
Total net chargeoffs |
$ 108 |
(438) |
237 |
67 |
1,042 |
|
|
|
|
|
|
Total |
|
|
|
|
|
Commercial |
$ 33 |
(492) |
123 |
11 |
854 |
Real estate mortgage - 1 to 4 family |
1,113 |
1,628 |
1,347 |
1,555 |
1,279 |
Installment |
37 |
49 |
53 |
34 |
46 |
Total net chargeoffs |
$ 1,183 |
1,185 |
1,523 |
1,600 |
2,179 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
03/31/15 |
12/31/14 |
09/30/14 |
06/30/14 |
03/31/14 |
|
|
|
|
|
|
Total nonperforming loans(1) |
$ 33,484 |
34,011 |
37,125 |
40,907 |
44,907 |
Total nonperforming assets(1) |
40,442 |
40,452 |
43,551 |
49,202 |
53,914 |
Total net chargeoffs(2) |
1,183 |
1,185 |
2,179 |
1,600 |
2,179 |
|
|
|
|
|
|
Allowance for loan losses(1) |
45,944 |
46,327 |
46,512 |
46,935 |
47,035 |
|
|
|
|
|
|
Nonperforming loans to total loans |
1.05% |
1.08% |
1.20% |
1.36% |
1.53% |
Nonperforming assets to total assets |
0.85% |
0.87% |
0.95% |
1.07% |
1.18% |
Allowance for loan losses to total loans |
1.44% |
1.47% |
1.51% |
1.56% |
1.60% |
Coverage ratio(1) |
137.2% |
136.2% |
125.3% |
114.7% |
104.7% |
Annualized net chargeoffs to average
loans(2) |
0.15% |
0.15% |
0.29% |
0.22% |
0.30% |
Allowance for loan losses to annualized net
chargeoffs(2) |
9.6x |
9.8x |
5.3x |
7.3x |
5.4x |
|
|
|
|
|
|
* Includes New York, New Jersey,
Vermont and Massachusetts. |
|
|
|
(1) At period-end |
|
|
|
|
|
(2) For the period ended |
|
|
|
|
|
|
|
DISTRIBUTION OF ASSETS,
LIABILITIES AND SHAREHOLDERS' EQUITY- |
INTEREST RATES AND
INTEREST DIFFERENTIAL |
|
|
|
|
|
|
|
(dollars in thousands) |
Three months ended |
Three months ended |
(Unaudited) |
March 31, 2015 |
March 31, 2014 |
|
Average |
Interest |
Average |
Average |
Interest |
Average |
|
Balance |
|
Rate |
Balance |
|
Rate |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale: |
|
|
|
|
|
|
U. S. government sponsored enterprises |
$ 77,865 |
212 |
1.09% |
$ 169,355 |
506 |
1.19% |
Mortgage backed securities and collateralized
mortgage obligations-residential |
478,410 |
2,393 |
2.00 |
545,823 |
3,078 |
2.26 |
State and political subdivisions |
2,092 |
38 |
7.26 |
6,133 |
105 |
6.85 |
Corporate bonds |
1,499 |
1 |
0.13 |
8,548 |
59 |
2.78 |
Small Business Administration-guaranteed
participation securities |
101,662 |
522 |
2.06 |
110,098 |
556 |
2.02 |
Mortgage backed securities and collateralized
mortgage obligations-commercial |
10,669 |
37 |
1.40 |
10,939 |
38 |
1.39 |
Other |
685 |
4 |
2.34 |
660 |
4 |
2.42 |
|
|
|
|
|
|
|
Total securities available for sale |
672,882 |
3,207 |
1.91 |
851,556 |
4,346 |
2.04 |
|
|
|
|
|
|
|
Federal funds sold and other short-term
Investments |
653,263 |
400 |
0.25 |
575,352 |
351 |
0.25 |
|
|
|
|
|
|
|
Held to maturity securities: |
|
|
|
|
|
|
Corporate bonds |
9,962 |
154 |
6.17 |
9,947 |
154 |
6.18 |
Mortgage backed securities
and collateralized mortgage obligations-residential |
59,351 |
478 |
3.22 |
74,324 |
625 |
3.36 |
|
|
|
|
|
|
|
Total held to maturity securities |
69,313 |
632 |
3.65 |
84,271 |
779 |
3.70 |
|
|
|
|
|
|
|
Federal Reserve Bank and Federal Home Loan
Bank stock |
9,228 |
116 |
5.03 |
10,500 |
133 |
5.07 |
|
|
|
|
|
|
|
Commercial loans |
219,050 |
2,796 |
5.11 |
222,332 |
2,797 |
5.03 |
Residential mortgage loans |
2,594,216 |
28,958 |
4.48 |
2,355,125 |
26,982 |
4.60 |
Home equity lines of credit |
352,258 |
3,061 |
3.52 |
340,681 |
2,936 |
3.49 |
Installment loans |
7,794 |
175 |
9.11 |
5,596 |
167 |
12.11 |
|
|
|
|
|
|
|
Loans, net of unearned income |
3,173,318 |
34,990 |
4.42 |
2,923,734 |
32,882 |
4.52 |
|
|
|
|
|
|
|
Total interest earning assets |
4,578,004 |
39,345 |
3.45 |
4,445,413 |
38,491 |
3.48 |
|
|
|
|
|
|
|
Allowance for loan losses |
(46,597) |
|
|
(48,219) |
|
|
Cash & non-interest earning assets |
138,560 |
|
|
130,091 |
|
|
|
|
|
|
|
|
|
Total assets |
$ 4,669,967 |
|
|
$ 4,527,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Interest bearing checking accounts |
$ 677,963 |
105 |
0.06% |
$ 605,741 |
84 |
0.06% |
Money market accounts |
637,858 |
617 |
0.39 |
646,601 |
599 |
0.38 |
Savings |
1,229,498 |
658 |
0.22 |
1,225,364 |
763 |
0.25 |
Time deposits |
1,180,436 |
2,434 |
0.84 |
1,139,811 |
1,951 |
0.69 |
|
|
|
|
|
|
|
Total interest bearing deposits |
3,725,755 |
3,814 |
0.42 |
3,617,517 |
3,397 |
0.38 |
Short-term borrowings |
192,344 |
346 |
0.73 |
202,175 |
393 |
0.79 |
|
|
|
|
|
|
|
Total interest bearing liabilities |
3,918,099 |
4,160 |
0.43 |
3,819,692 |
3,790 |
0.40 |
|
|
|
|
|
|
|
Demand deposits |
328,407 |
|
|
316,009 |
|
|
Other liabilities |
25,289 |
|
|
22,311 |
|
|
Shareholders' equity |
398,172 |
|
|
369,273 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
$ 4,669,967 |
|
|
$ 4,527,285 |
|
|
|
|
|
|
|
|
|
Net interest income, tax equivalent |
|
35,185 |
|
|
34,701 |
|
|
|
|
|
|
|
|
Net interest spread |
|
|
3.02% |
|
|
3.08% |
|
|
|
|
|
|
|
Net interest margin (net interest income to
total interest earning assets) |
|
|
3.08% |
|
|
3.13% |
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
(20) |
|
|
(45) |
|
|
|
|
|
|
|
|
Net interest income |
|
35,165 |
|
|
34,656 |
|
Non-GAAP Financial Measures Reconciliation
Tangible book value per share and tangible equity as a
percentage of tangible assets at period end are non-GAAP financial
measures derived from GAAP-based amounts. We calculate tangible
equity and tangible assets by excluding the balance of intangible
assets from shareholders' equity and total assets, respectively. We
calculate tangible book value per share by dividing tangible equity
by common shares outstanding, as compared to book value per common
share, which we calculate by dividing shareholders' equity by
common shares outstanding. We calculate tangible equity as a
percentage of tangible assets at period end by dividing tangible
equity by tangible assets at period end. We believe that this is
consistent with the treatment by bank regulatory agencies, which
exclude intangible assets from the calculation of risk-based
capital ratios.
The efficiency ratio is a non-GAAP measure of expense control
relative to recurring revenue. We calculate the efficiency
ratio by dividing total noninterest expenses as determined under
GAAP, but excluding other real estate expense, net, which we refer
to below as recurring expense, by net interest income (fully
taxable equivalent) and total noninterest income as determined
under GAAP, but excluding net gains on securities from this
calculation, which we refer to in the table below as recurring
revenue. We believe that this provides a reasonable measure of
recurring expenses relative to recurring revenue.
Core net income ("core earnings") and core net income ("core
earnings") per share are non-GAAP financial measures derived from
GAAP-based amounts. We calculate core earnings by excluding the net
after-tax gain on the sale of the proposed Florida operations
building during the first quarter of 2014 from net income and from
net income per share. We believe that this provides a
reasonable measure of core net income (earnings).
We believe that these non-GAAP financial measures provide
information that is important to investors and that is useful in
understanding our financial position, results and ratios. Our
management internally assesses our performance based, in part, on
these measures. However, these non-GAAP financial measures are
supplemental and are not a substitute for an analysis based on GAAP
measures. As other companies may use different calculations for
these measures, this presentation may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of the non-GAAP measures of tangible common equity,
tangible book value per share, efficiency ratio, net income and net
income per share to the underlying GAAP numbers is set forth
below.
NON-GAAP FINANCIAL MEASURES
RECONCILIATION |
|
|
|
|
|
|
|
(dollars in thousands, except per share
amounts) |
|
|
|
(Unaudited) |
|
|
|
|
03/31/15 |
12/31/14 |
03/31/14 |
Tangible Book Value Per
Share |
|
|
|
|
|
|
|
Equity |
$ 400,476 |
393,444 |
371,779 |
Less: Intangible assets |
553 |
553 |
553 |
Tangible equity |
399,923 |
392,891 |
371,226 |
|
|
|
|
Shares outstanding |
94,956 |
94,857 |
94,564 |
Tangible book value per share |
4.21 |
4.14 |
3.93 |
Book value per share |
4.22 |
4.15 |
3.93 |
|
|
|
|
Tangible Equity to Tangible
Assets |
|
|
|
Total Assets |
4,740,656 |
4,644,439 |
4,578,737 |
Less: Intangible assets |
553 |
553 |
553 |
Tangible assets |
4,740,103 |
4,643,886 |
4,578,184 |
|
|
|
|
Tangible Equity to Tangible Assets |
8.44% |
8.46% |
8.11% |
Equity to Assets |
8.45% |
8.47% |
8.12% |
|
|
|
|
|
3 Months
Ended |
Efficiency Ratio |
03/31/15 |
12/31/14 |
03/31/14 |
|
|
|
|
Net interest income (fully taxable
equivalent) |
$ 35,185 |
35,693 |
34,701 |
Non-interest income |
4,623 |
4,752 |
5,759 |
Less: Net gain on sale of building |
-- |
-- |
1,556 |
Less: Net gain on securities |
249 |
335 |
6 |
Recurring revenue |
39,559 |
40,110 |
38,898 |
|
|
|
|
Total noninterest expense |
21,857 |
22,240 |
20,801 |
Less: Other real estate expense,
net |
424 |
841 |
855 |
Recurring expense |
21,433 |
21,399 |
19,946 |
|
|
|
|
Efficiency Ratio |
54.18% |
53.35% |
51.28% |
|
|
|
|
|
|
|
|
|
3 Months
Ended |
Core Net Income |
03/31/15 |
12/31/14 |
03/31/14 |
|
|
|
|
Net income |
$ 10,715 |
10,660 |
11,011 |
Less: Gain on sale of building, net of
tax |
-- |
-- |
965 |
Core net income |
10,715 |
10,660 |
10,046 |
|
|
|
|
Average basic shares outstanding (in
thousands) |
94,947 |
94,681 |
94,452 |
Average diluted shares outstanding (in
thousands) |
95,074 |
94,813 |
94,581 |
|
|
|
|
Net income per common share: |
|
|
|
- Basic |
$ 0.113 |
0.113 |
0.116 |
- Diluted |
0.113 |
0.112 |
0.116 |
|
|
|
|
Core net income per common share: |
|
|
|
|
|
|
|
- Basic |
$ 0.113 |
0.113 |
0.106 |
- Diluted |
0.113 |
0.112 |
0.106 |
CONTACT: Kevin T. Timmons
Vice President/Treasurer
(518) 381-3607
TrustCo Bank Corporation... (NASDAQ:TRST)
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