Executive Snapshot:
TrustCo Bank Corp NY
(TrustCo) (Nasdaq:TRST)
today announced third quarter of 2016 net income of $10.9 million
compared to $10.5 million for the second quarter of 2016 and $10.6
million for the third quarter of 2015.
Robert J. McCormick, President and Chief
Executive Officer noted, “We are pleased to be able to report an
increase in earnings in the third quarter of 2016 as compared to
the third quarter of 2015. We are encouraged by the
combination of revenue growth and expense decline in the quarter,
despite a difficult operating environment and continued higher
costs related to regulatory issues. Our continued focus on
traditional lending criteria and conservative balance sheet
management has enabled us to produce consistent earnings, maintain
strong liquidity and capital and allowed us to continue to grow our
business and take advantage of changes in market and competitive
conditions. In terms of our core business, we continue to add
customer relationships which ultimately drive future growth.
We will continue to take advantage of opportunities as they are
presented during the balance of 2016. Recent merger activity
between our competitors, including the Key – First Niagara merger,
may provide us with additional opportunities to add customers.”
TrustCo saw continued solid loan growth in the
third quarter of 2016 compared to the prior year. Loan
portfolio expansion was funded primarily by our strong liquidity
reserves. The continued shift toward loans helped offset the
margin impact from continued comparatively low yields on cash and
investments. The growth in average deposits in the third
quarter of 2016 versus the prior year was led by lower cost core
deposits. TrustCo’s strong liquidity position continues to
allow the Company to take advantage of opportunities when interest
rate conditions change.
For the third quarter of 2016, return on average
assets and return on average equity were 0.90% and 10.05%,
respectively, compared to 0.88% and 10.35% for the third quarter of
2015. The decline in return on average equity was due to
continued growth of TrustCo’s capital position. Diluted
earnings per share were $0.114 for the third quarter of 2016,
compared to $0.111 for the third quarter of 2015. As
discussed in recent quarters, increased operating costs in response
to regulatory concerns have hampered earnings. Higher
expenses were anticipated in order to fulfill operating and
regulatory requirements. We took aggressive action to meet
these requirements during 2015 and costs related to those actions
have continued into 2016. While some of these costs will be
recurring, others will diminish over time. During the third quarter
of 2016 we experienced a reduction in FDIC deposit insurance
premiums and were also able to reduce expenses in a number of other
categories.
For the first nine months of 2016, diluted net
income per share was $0.333, compared to $0.337 for the first nine
months of 2015. Return on average assets and equity were
0.89% and 9.97% for the first nine months of 2016, compared to
0.91% and 10.64% for the first nine months of 2015.
Average loans were up $108.7 million or 3.3% in
the third quarter of 2016, over the same period in 2015. Loan
growth was constrained by a $13.4 million decline in commercial
loans, which have become less attractive on a risk adjusted
basis. Average residential loans, our primary lending focus,
were up $130.3 million or 4.8% in the third quarter of 2016, over
the same period in 2015. Average deposits were up $37.5
million or 0.9% for the third quarter of 2016 over the same period
a year earlier. The increase in deposits came from core
deposit accounts, which consist of checking, savings and money
market deposits. Average core deposits increased $51.2
million from the third quarter of 2015 to the third quarter of
2016, while average time deposit balances declined $13.6
million. 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 continue to make good progress
expanding loans and deposits throughout our entire branch
network. We expect that trend to continue as the newer
branches continue to mature.”
“At September 30, 2016, our average branch size
was $28.9 million. 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 loan loss reserve measures
mostly improved versus both September 30, 2015 and as compared to
December 31, 2015. Nonperforming loans (NPLs) were $26.0
million at September 30, 2016, compared to $31.9 million at
September 30, 2015 and $28.3 million at December 31, 2015.
NPLs were equal to 0.77% of total loans at September 30, 2016,
compared to 0.97% a year earlier and 0.86% at December 31,
2015. The coverage ratio, or allowance for loan losses to
NPLs, was 169.0% at September 30, 2016, compared to 141.4% at
September 30, 2015 and 158.4% at December 31, 2015.
Nonperforming assets (NPAs) were at $30.8 million at September 30,
2016 compared to $37.8 million at September 30, 2015 and $34.7
million at December 31, 2015. The ratio of loan loss
allowance to total loans was 1.30% as of September 30, 2016,
compared to 1.38% at September 30, 2015 and to 1.36% at December
31, 2015 and reflects both the improvement in asset quality and
economic conditions in our lending areas. The allowance for
loan losses was $44.0 million at September 30, 2016 compared to
$45.2 million at September 30, 2015 and $44.8 million at December
31, 2015. Net chargeoffs for the third quarter of 2016
decreased versus both the third quarter of 2015 and the second
quarter of 2016, to $0.9 million. The net chargeoff ratio was
0.10% for the third quarter of 2016, compared to 0.15% in the third
quarter of 2015 and was at the lowest level since the first quarter
of 2008. The provision for loan losses was $750 thousand,
compared to $800 thousand in the third quarter of 2015.
The net interest margin for the third quarter of
2016 was 3.09%, the same as in the second quarter and a basis point
higher than in the third quarter of 2015.
At September 30, 2016 the equity to asset ratio
was 9.05%, compared to 8.91% at June 30, 2016 and 8.72% at
September 30, 2015. The tangible equity ratio was 9.04%
compared to 8.90% at June 30, 2016 and 8.71% at September 30,
2015. GAAP book value per share at September 30, 2016 was
$4.56 compared to $4.33 a year earlier and tangible book value per
share was $4.55 and $4.33, respectively. Tangible equity and
book value are non-GAAP measures and are discussed on page 13.
TrustCo Bank Corp NY is a $4.8 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 September 30, 2016.
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 Third Quarter 2016
results will be held at 9:00 a.m. Eastern Time on October 24,
2016. 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
10094705. The call will also be audio webcast at:
http://services.choruscall.com/links/trst161024.html, 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 2016 and for the growth of loans and deposits
throughout our branch network, our ability to capitalize on
economic changes in the areas in which we operate and the extent to
which higher expenses to fulfill operating and regulatory
requirements recur or diminish over time. 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; our ability to comply with the supervisory
agreement entered into with Trustco Bank’s regulator and potential
regulatory actions if we fail to comply; 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 Trustco Bank and the continued ability of Trustco
Bank under regulatory rules and the supervisory agreement to
distribute capital to TrustCo, which could affect our ability to
pay dividends; results of examinations of Trustco Bank and TrustCo
by our respective regulators; 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;
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
most recent annual report on Form 10-K and 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 |
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(dollars in thousands,
except per share data) |
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(Unaudited) |
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Three Months Ended |
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09/30/16 |
06/30/16 |
09/30/15 |
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Summary of
operations |
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Net interest
income (TE) |
$ |
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36,681 |
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36,311 |
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36,069 |
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Provision for
loan losses |
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750 |
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800 |
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|
800 |
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Net gain on
securities transactions |
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- |
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668 |
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- |
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Noninterest
income, excluding net gain on securities transactions |
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4,729 |
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4,531 |
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4,365 |
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Noninterest
expense |
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23,049 |
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23,974 |
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23,464 |
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Net income |
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10,930 |
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10,464 |
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10,616 |
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Per common share |
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Net income per
share: |
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-
Basic |
$ |
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0.114 |
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0.110 |
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0.112 |
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-
Diluted |
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0.114 |
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0.109 |
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0.111 |
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Cash
dividends |
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|
0.066 |
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0.066 |
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0.066 |
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Tangible Book
value at period end |
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4.55 |
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4.50 |
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4.33 |
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Market price at
period end |
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7.09 |
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6.41 |
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5.84 |
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At period end |
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Full time
equivalent employees |
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790 |
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801 |
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778 |
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Full service
banking offices |
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145 |
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145 |
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146 |
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Performance ratios |
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Return on
average assets |
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0.90 |
% |
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0.88 |
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0.88 |
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Return on
average equity |
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10.05 |
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9.88 |
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10.35 |
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Efficiency
(1) |
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54.11 |
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57.70 |
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56.04 |
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Net interest
spread (TE) |
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3.03 |
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3.03 |
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|
3.02 |
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Net interest
margin (TE) |
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3.09 |
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3.09 |
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3.08 |
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Dividend payout
ratio |
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57.40 |
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59.89 |
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58.82 |
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Capital ratio at period
end |
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Consolidated
tangible equity to tangible assets (2) |
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9.04 |
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8.90 |
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8.71 |
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Asset quality analysis
at period end |
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Nonperforming
loans to total loans |
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0.77 |
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0.84 |
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0.97 |
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Nonperforming
assets to total assets |
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0.64 |
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0.68 |
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0.80 |
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Allowance for
loan losses to total loans |
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1.30 |
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1.32 |
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1.38 |
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Coverage ratio
(3) |
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1.6x |
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1.6 |
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1.4 |
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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 and gain on sale of
building and 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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FINANCIAL
HIGHLIGHTS, Continued |
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(dollars in
thousands, except per share data) |
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(Unaudited) |
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Nine Months Ended |
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09/30/16 |
09/30/15 |
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Summary of
operations |
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Net interest
income (TE) |
$ |
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109,188 |
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106,944 |
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Provision for
loan losses |
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2,350 |
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2,400 |
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Net gain on
securities transactions |
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|
668 |
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|
249 |
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Noninterest
income, excluding net gain on securities transactions |
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13,832 |
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13,193 |
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Noninterest
expense |
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70,462 |
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67,452 |
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Net income |
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31,803 |
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32,058 |
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Per common share |
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Net income per
share: |
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-
Basic |
$ |
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0.333 |
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0.337 |
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-
Diluted |
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0.333 |
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0.337 |
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Cash
dividends |
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|
0.197 |
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0.197 |
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Tangible Book
value at period end |
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4.55 |
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4.33 |
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Market price at
period end |
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7.09 |
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5.84 |
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Performance ratios |
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Return on
average assets |
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0.89 |
% |
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0.91 |
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Return on
average equity |
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9.97 |
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10.64 |
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Efficiency
(1) |
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56.01 |
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54.98 |
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Net interest
spread (TE) |
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3.04 |
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3.01 |
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Net interest
margin (TE) |
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|
3.10 |
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3.08 |
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Dividend payout
ratio |
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59.11 |
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58.36 |
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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 and gain on sale of
building and nonperforming loans). |
TE = Taxable equivalent. |
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CONSOLIDATED
STATEMENTS OF INCOME |
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(dollars in
thousands, except per share data) |
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|
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(Unaudited) |
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|
|
|
|
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Three Months Ended |
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9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
Interest and dividend
income: |
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Interest and fees on
loans |
$ |
|
36,171 |
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35,652 |
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35,605 |
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35,930 |
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35,631 |
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Interest and dividends
on securities available for sale: |
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U. S. government
sponsored enterprises |
|
|
408 |
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|
404 |
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|
255 |
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|
256 |
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584 |
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State and
political subdivisions |
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13 |
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13 |
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14 |
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16 |
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23 |
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Mortgage-backed
securities and collateralized mortgage obligations-residential |
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1,829 |
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2,169 |
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2,116 |
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2,233 |
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2,230 |
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Corporate
bonds |
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|
97 |
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- |
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- |
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- |
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- |
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Small Business
Administration-guaranteed participation securities |
|
|
445 |
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|
450 |
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|
476 |
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|
482 |
|
|
497 |
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Mortgage-backed
securities and collateralized mortgage obligations-commercial |
|
|
36 |
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|
38 |
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|
36 |
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|
37 |
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|
37 |
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Other
securities |
|
|
4 |
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|
4 |
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|
4 |
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|
4 |
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|
4 |
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Total interest
and dividends on securities available for sale |
|
|
2,832 |
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|
3,078 |
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|
2,901 |
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|
3,028 |
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|
3,375 |
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|
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Interest on held to
maturity securities: |
|
|
|
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|
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
347 |
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|
374 |
|
|
402 |
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|
425 |
|
|
461 |
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Corporate
bonds |
|
|
156 |
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|
154 |
|
|
154 |
|
|
154 |
|
|
153 |
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Total interest
on held to maturity securities |
|
|
503 |
|
|
528 |
|
|
556 |
|
|
579 |
|
|
614 |
|
|
|
|
|
|
|
|
Federal Reserve
Bank and Federal Home Loan Bank stock |
|
|
131 |
|
|
118 |
|
|
120 |
|
|
120 |
|
|
113 |
|
|
|
|
|
|
|
|
Interest on federal
funds sold and other short-term investments |
|
|
866 |
|
|
832 |
|
|
844 |
|
|
494 |
|
|
408 |
|
Total
interest income |
|
|
40,503 |
|
|
40,208 |
|
|
40,026 |
|
|
40,151 |
|
|
40,141 |
|
|
|
|
|
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|
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Interest
expense: |
|
|
|
|
|
|
Interest on
deposits: |
|
|
|
|
|
|
Interest-bearing
checking |
|
|
120 |
|
|
116 |
|
|
114 |
|
|
115 |
|
|
117 |
|
Savings |
|
|
504 |
|
|
604 |
|
|
604 |
|
|
608 |
|
|
603 |
|
Money market
deposit accounts |
|
|
463 |
|
|
467 |
|
|
496 |
|
|
513 |
|
|
537 |
|
Time
deposits |
|
|
2,468 |
|
|
2,460 |
|
|
2,373 |
|
|
2,375 |
|
|
2,544 |
|
Interest on
short-term borrowings |
|
|
281 |
|
|
262 |
|
|
257 |
|
|
278 |
|
|
290 |
|
Total interest expense |
|
|
3,836 |
|
|
3,909 |
|
|
3,844 |
|
|
3,889 |
|
|
4,091 |
|
|
|
|
|
|
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Net interest income |
|
|
36,667 |
|
|
36,299 |
|
|
36,182 |
|
|
36,262 |
|
|
36,050 |
|
|
|
|
|
|
|
|
Provision for loan
losses |
|
|
750 |
|
|
800 |
|
|
800 |
|
|
1,300 |
|
|
800 |
|
Net interest income
after provision for loan losses |
|
|
35,917 |
|
|
35,499 |
|
|
35,382 |
|
|
34,962 |
|
|
35,250 |
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
Trustco Financial
Services income |
|
|
1,347 |
|
|
1,512 |
|
|
1,605 |
|
|
1,489 |
|
|
1,351 |
|
Fees for services
to customers |
|
|
2,664 |
|
|
2,737 |
|
|
2,661 |
|
|
2,704 |
|
|
2,770 |
|
Net gain on
securities transactions |
|
|
- |
|
|
668 |
|
|
- |
|
|
2 |
|
|
- |
|
Other |
|
|
718 |
|
|
282 |
|
|
306 |
|
|
235 |
|
|
244 |
|
Total
noninterest income |
|
|
4,729 |
|
|
5,199 |
|
|
4,572 |
|
|
4,430 |
|
|
4,365 |
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
Salaries and
employee benefits |
|
|
8,995 |
|
|
8,934 |
|
|
9,003 |
|
|
8,042 |
|
|
7,834 |
|
Net occupancy
expense |
|
|
3,887 |
|
|
3,918 |
|
|
4,088 |
|
|
3,884 |
|
|
3,929 |
|
Equipment
expense |
|
|
1,596 |
|
|
1,840 |
|
|
1,514 |
|
|
1,530 |
|
|
1,596 |
|
Professional
services |
|
|
1,959 |
|
|
2,098 |
|
|
2,146 |
|
|
2,067 |
|
|
2,238 |
|
Outsourced
services |
|
|
1,465 |
|
|
1,425 |
|
|
1,551 |
|
|
1,585 |
|
|
1,425 |
|
Advertising
expense |
|
|
489 |
|
|
570 |
|
|
729 |
|
|
592 |
|
|
668 |
|
FDIC and other
insurance |
|
|
1,127 |
|
|
1,949 |
|
|
1,990 |
|
|
2,055 |
|
|
2,202 |
|
Other real estate
expense, net |
|
|
895 |
|
|
423 |
|
|
519 |
|
|
570 |
|
|
806 |
|
Other |
|
|
2,636 |
|
|
2,817 |
|
|
1,899 |
|
|
2,783 |
|
|
2,766 |
|
Total
noninterest expenses |
|
|
23,049 |
|
|
23,974 |
|
|
23,439 |
|
|
23,108 |
|
|
23,464 |
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
17,597 |
|
|
16,724 |
|
|
16,515 |
|
|
16,284 |
|
|
16,151 |
|
Income taxes |
|
|
6,667 |
|
|
6,260 |
|
|
6,106 |
|
|
6,104 |
|
|
5,535 |
|
|
|
|
|
|
|
|
Net income |
$ |
|
10,930 |
|
|
10,464 |
|
|
10,409 |
|
|
10,180 |
|
|
10,616 |
|
Net income per common
share: |
|
|
|
|
|
|
-
Basic |
$ |
|
0.114 |
|
|
0.110 |
|
|
0.109 |
|
|
0.107 |
|
|
0.112 |
|
|
|
|
|
|
|
|
-
Diluted |
|
|
0.114 |
|
|
0.109 |
|
|
0.109 |
|
|
0.107 |
|
|
0.111 |
|
|
|
|
|
|
|
|
Average basic shares
(in thousands) |
|
|
95,603 |
|
|
95,487 |
|
|
95,365 |
|
|
95,256 |
|
|
95,149 |
|
Average diluted shares
(in thousands) |
|
|
95,722 |
|
|
95,580 |
|
|
95,412 |
|
|
95,349 |
|
|
95,234 |
|
|
|
|
|
|
|
|
Note: Taxable
equivalent net interest income |
$ |
|
36,681 |
|
|
36,311 |
|
|
36,196 |
|
|
36,278 |
|
|
36,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
9/30/2016 |
9/30/2015 |
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
|
Interest and fees on
loans |
$ |
|
107,428 |
|
|
105,957 |
|
|
|
|
Interest and dividends
on securities available for sale: |
|
|
|
|
|
|
U. S. government
sponsored enterprises |
|
|
1,067 |
|
|
1,162 |
|
|
|
|
State and
political subdivisions |
|
|
40 |
|
|
71 |
|
|
|
|
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
6,114 |
|
|
6,899 |
|
|
|
|
Corporate
bonds |
|
|
97 |
|
|
1 |
|
|
|
|
Small Business
Administration-guaranteed participation securities |
|
|
1,371 |
|
|
1,522 |
|
|
|
|
Mortgage-backed
securities and collateralized mortgage obligations-commercial |
|
|
110 |
|
|
112 |
|
|
|
|
Other
securities |
|
|
12 |
|
|
12 |
|
|
|
|
Total interest
and dividends on securities available for sale |
|
|
8,811 |
|
|
9,779 |
|
|
|
|
|
|
|
|
|
|
|
Interest on held to
maturity securities: |
|
|
|
|
|
|
Mortgage-backed
securities-residential |
|
|
1,123 |
|
|
1,419 |
|
|
|
|
Corporate
bonds |
|
|
464 |
|
|
461 |
|
|
|
|
Total interest
on held to maturity securities |
|
|
1,587 |
|
|
1,880 |
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve
Bank and Federal Home Loan Bank stock |
|
|
369 |
|
|
347 |
|
|
|
|
|
|
|
|
|
|
|
Interest on federal
funds sold and other short-term investments |
|
|
2,542 |
|
|
1,231 |
|
|
|
|
Total interest income |
|
|
120,737 |
|
|
119,194 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
Interest on
deposits: |
|
|
|
|
|
|
Interest-bearing
checking |
|
|
350 |
|
|
333 |
|
|
|
|
Savings |
|
|
1,712 |
|
|
1,860 |
|
|
|
|
Money market
deposit accounts |
|
|
1,426 |
|
|
1,701 |
|
|
|
|
Time
deposits |
|
|
7,301 |
|
|
7,478 |
|
|
|
|
Interest on
short-term borrowings |
|
|
800 |
|
|
936 |
|
|
|
|
Total interest expense |
|
|
11,589 |
|
|
12,308 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
109,148 |
|
|
106,886 |
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses |
|
|
2,350 |
|
|
2,400 |
|
|
|
|
Net interest income
after provision for loan losses |
|
|
106,798 |
|
|
104,486 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
Trust department
income |
|
|
4,464 |
|
|
4,482 |
|
|
|
|
Fees for services
to customers |
|
|
8,062 |
|
|
7,985 |
|
|
|
|
Net gain on
securities transactions |
|
|
668 |
|
|
249 |
|
|
|
|
Other |
|
|
1,306 |
|
|
726 |
|
|
|
|
Total
noninterest income |
|
|
14,500 |
|
|
13,442 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
Salaries and
employee benefits |
|
|
26,932 |
|
|
24,479 |
|
|
|
|
Net occupancy
expense |
|
|
11,893 |
|
|
11,915 |
|
|
|
|
Equipment
expense |
|
|
4,950 |
|
|
5,341 |
|
|
|
|
Professional
services |
|
|
6,203 |
|
|
5,811 |
|
|
|
|
Outsourced
services |
|
|
4,441 |
|
|
4,275 |
|
|
|
|
Advertising
expense |
|
|
1,788 |
|
|
2,001 |
|
|
|
|
FDIC and other
insurance |
|
|
5,066 |
|
|
4,284 |
|
|
|
|
Other real estate
(income) expense, net |
|
|
1,837 |
|
|
1,431 |
|
|
|
|
Other |
|
|
7,352 |
|
|
7,915 |
|
|
|
|
Total
noninterest expenses |
|
|
70,462 |
|
|
67,452 |
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
50,836 |
|
|
50,476 |
|
|
|
|
Income taxes |
|
|
19,033 |
|
|
18,418 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
|
31,803 |
|
|
32,058 |
|
|
|
|
|
|
|
|
|
|
|
Net income per Common
Share: |
|
|
|
|
|
|
- Basic |
$ |
|
0.333 |
|
|
0.337 |
|
|
|
|
|
|
|
|
|
|
|
- Diluted |
|
|
0.333 |
|
|
0.337 |
|
|
|
|
|
|
|
|
|
|
|
Average basic shares
(thousands) |
|
|
95,486 |
|
|
95,051 |
|
|
|
|
Average diluted shares
(thousands) |
|
|
95,572 |
|
|
95,167 |
|
|
|
|
|
|
|
|
|
|
|
Note: Taxable
equivalent net interest income |
$ |
|
109,188 |
|
|
106,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
|
42,296 |
|
|
39,787 |
|
|
37,373 |
|
|
41,698 |
|
|
42,560 |
|
Federal funds
sold and other short term investments |
|
|
622,132 |
|
|
718,609 |
|
|
722,805 |
|
|
676,458 |
|
|
655,512 |
|
Total cash and
cash equivalents |
|
|
664,428 |
|
|
758,396 |
|
|
760,178 |
|
|
718,156 |
|
|
698,072 |
|
|
|
|
|
|
|
Securities
available for sale: |
|
|
|
|
|
U. S. government
sponsored enterprises |
|
|
116,327 |
|
|
116,595 |
|
|
66,920 |
|
|
86,737 |
|
|
103,492 |
|
States and
political subdivisions |
|
|
970 |
|
|
974 |
|
|
974 |
|
|
1,290 |
|
|
1,963 |
|
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
400,575 |
|
|
404,138 |
|
|
422,189 |
|
|
411,729 |
|
|
413,878 |
|
Small Business
Administration-guaranteed participation securities |
|
|
84,687 |
|
|
87,740 |
|
|
89,053 |
|
|
90,416 |
|
|
94,038 |
|
Mortgage-backed
securities and collateralized mortgage obligations-commercial |
|
|
10,233 |
|
|
10,374 |
|
|
10,307 |
|
|
10,180 |
|
|
10,491 |
|
Corporate
bonds |
|
|
41,025 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Other
securities |
|
|
685 |
|
|
685 |
|
|
685 |
|
|
685 |
|
|
685 |
|
Total securities
available for sale |
|
|
654,502 |
|
|
620,506 |
|
|
590,128 |
|
|
601,037 |
|
|
624,547 |
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
Mortgage-backed
securities and collateralized mortgage obligations-residential |
|
|
38,044 |
|
|
40,702 |
|
|
43,595 |
|
|
46,490 |
|
|
50,027 |
|
Corporate
bonds |
|
|
9,986 |
|
|
9,982 |
|
|
9,979 |
|
|
9,975 |
|
|
9,971 |
|
Total held to
maturity securities |
|
|
48,030 |
|
|
50,684 |
|
|
53,574 |
|
|
56,465 |
|
|
59,998 |
|
|
|
|
|
|
|
|
Federal Reserve
Bank and Federal Home Loan Bank stock |
|
|
9,579 |
|
|
9,579 |
|
|
9,480 |
|
|
9,480 |
|
|
9,480 |
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial |
|
|
189,795 |
|
|
195,698 |
|
|
198,765 |
|
|
203,415 |
|
|
208,794 |
|
Residential
mortgage loans |
|
|
2,845,876 |
|
|
2,786,951 |
|
|
2,737,784 |
|
|
2,721,173 |
|
|
2,707,944 |
|
Home equity line
of credit |
|
|
343,445 |
|
|
352,069 |
|
|
356,163 |
|
|
359,325 |
|
|
356,337 |
|
Installment
loans |
|
|
8,515 |
|
|
8,476 |
|
|
8,667 |
|
|
9,391 |
|
|
8,930 |
|
Loans, net of
deferred fees and costs |
|
|
3,387,631 |
|
|
3,343,194 |
|
|
3,301,379 |
|
|
3,293,304 |
|
|
3,282,005 |
|
Less: |
|
|
|
|
|
Allowance for
loan losses |
|
|
43,950 |
|
|
44,064 |
|
|
44,398 |
|
|
44,762 |
|
|
45,149 |
|
Net loans |
|
|
3,343,681 |
|
|
3,299,130 |
|
|
3,256,981 |
|
|
3,248,542 |
|
|
3,236,856 |
|
|
|
|
|
|
|
|
Bank premises and
equipment, net |
|
|
36,110 |
|
|
36,793 |
|
|
37,360 |
|
|
37,643 |
|
|
37,506 |
|
Other assets |
|
|
56,519 |
|
|
55,825 |
|
|
55,561 |
|
|
63,669 |
|
|
59,358 |
|
|
|
|
|
|
|
Total assets |
$ |
|
4,812,849 |
|
|
4,830,913 |
|
|
4,763,262 |
|
|
4,734,992 |
|
|
4,725,817 |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Demand |
$ |
|
380,090 |
|
|
376,669 |
|
|
359,060 |
|
|
365,081 |
|
|
354,162 |
|
Interest-bearing
checking |
|
|
785,118 |
|
|
766,322 |
|
|
746,562 |
|
|
754,347 |
|
|
719,071 |
|
Savings
accounts |
|
|
1,277,734 |
|
|
1,282,006 |
|
|
1,272,394 |
|
|
1,262,194 |
|
|
1,237,549 |
|
Money market
deposit accounts |
|
|
566,097 |
|
|
577,063 |
|
|
595,585 |
|
|
610,826 |
|
|
617,103 |
|
Time
deposits |
|
|
1,159,199 |
|
|
1,178,567 |
|
|
1,168,887 |
|
|
1,107,930 |
|
|
1,168,908 |
|
Total
deposits |
|
|
4,168,238 |
|
|
4,180,627 |
|
|
4,142,488 |
|
|
4,100,378 |
|
|
4,096,793 |
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
179,204 |
|
|
190,542 |
|
|
169,528 |
|
|
191,226 |
|
|
184,405 |
|
Accrued expenses
and other liabilities |
|
|
29,799 |
|
|
29,479 |
|
|
28,221 |
|
|
30,078 |
|
|
32,327 |
|
|
|
|
|
|
|
Total liabilities |
|
|
4,377,241 |
|
|
4,400,648 |
|
|
4,340,237 |
|
|
4,321,682 |
|
|
4,313,525 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
Capital
stock |
|
|
99,121 |
|
|
99,071 |
|
|
98,973 |
|
|
98,973 |
|
|
98,964 |
|
Surplus |
|
|
171,093 |
|
|
171,174 |
|
|
171,113 |
|
|
171,443 |
|
|
171,788 |
|
Undivided
profits |
|
|
197,013 |
|
|
192,356 |
|
|
188,159 |
|
|
184,009 |
|
|
180,093 |
|
Accumulated other
comprehensive income (loss), net of tax |
|
|
2,328 |
|
|
2,395 |
|
|
73 |
|
|
(4,781 |
) |
|
(1,174 |
) |
Treasury stock at
cost |
|
|
(33,947 |
) |
|
(34,731 |
) |
|
(35,293 |
) |
|
(36,334 |
) |
|
(37,379 |
) |
|
|
|
|
|
|
Total shareholders' equity |
|
|
435,608 |
|
|
430,265 |
|
|
423,025 |
|
|
413,310 |
|
|
412,292 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
|
4,812,849 |
|
|
4,830,913 |
|
|
4,763,262 |
|
|
4,734,992 |
|
|
4,725,817 |
|
|
|
|
|
|
|
|
Outstanding shares (in
thousands) |
|
|
95,614 |
|
|
95,493 |
|
|
95,369 |
|
|
95,262 |
|
|
95,149 |
|
NONPERFORMING
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
09/30/16 |
06/30/16 |
03/31/16 |
12/31/15 |
09/30/15 |
|
New York and
other states* |
|
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
|
Commercial |
$ |
|
2,366 |
|
|
2,690 |
|
|
2,762 |
|
|
3,024 |
|
|
3,699 |
|
|
Real estate
mortgage - 1 to 4 family |
|
|
21,678 |
|
|
23,559 |
|
|
25,669 |
|
|
23,273 |
|
|
26,059 |
|
|
Installment |
|
|
70 |
|
|
49 |
|
|
74 |
|
|
90 |
|
|
69 |
|
|
Total non-accrual
loans |
|
|
24,114 |
|
|
26,298 |
|
|
28,505 |
|
|
26,387 |
|
|
29,827 |
|
|
Other nonperforming
real estate mortgages - 1 to 4 family |
|
|
44 |
|
|
45 |
|
|
47 |
|
|
48 |
|
|
50 |
|
|
Total nonperforming
loans |
|
|
24,158 |
|
|
26,343 |
|
|
28,552 |
|
|
26,435 |
|
|
29,877 |
|
|
Other real estate
owned |
|
|
4,768 |
|
|
4,602 |
|
|
5,208 |
|
|
6,120 |
|
|
5,893 |
|
|
Total nonperforming
assets |
$ |
|
28,926 |
|
|
30,945 |
|
|
33,760 |
|
|
32,555 |
|
|
35,770 |
|
|
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
|
Commercial |
$ |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Real estate
mortgage - 1 to 4 family |
|
|
1,844 |
|
|
1,900 |
|
|
1,802 |
|
|
1,817 |
|
|
2,054 |
|
|
Installment |
|
|
- |
|
|
- |
|
|
- |
|
|
8 |
|
|
9 |
|
|
Total non-accrual
loans |
|
|
1,844 |
|
|
1,900 |
|
|
1,802 |
|
|
1,825 |
|
|
2,063 |
|
|
Other nonperforming
real estate mortgages - 1 to 4 family |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Total nonperforming
loans |
|
|
1,844 |
|
|
1,900 |
|
|
1,802 |
|
|
1,825 |
|
|
2,063 |
|
|
Other real estate
owned |
|
|
- |
|
|
- |
|
|
476 |
|
|
335 |
|
|
- |
|
|
Total nonperforming
assets |
$ |
|
1,844 |
|
|
1,900 |
|
|
2,278 |
|
|
2,160 |
|
|
2,063 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
Loans in nonaccrual
status: |
|
|
|
|
|
|
|
Commercial |
$ |
|
2,366 |
|
|
2,690 |
|
|
2,762 |
|
|
3,024 |
|
|
3,699 |
|
|
Real estate
mortgage - 1 to 4 family |
|
|
23,522 |
|
|
25,459 |
|
|
27,471 |
|
|
25,090 |
|
|
28,113 |
|
|
Installment |
|
|
70 |
|
|
49 |
|
|
74 |
|
|
98 |
|
|
78 |
|
|
Total non-accrual
loans |
|
|
25,958 |
|
|
28,198 |
|
|
30,307 |
|
|
28,212 |
|
|
31,890 |
|
|
Other nonperforming
real estate mortgages - 1 to 4 family |
|
|
44 |
|
|
45 |
|
|
47 |
|
|
48 |
|
|
50 |
|
|
Total nonperforming
loans |
|
|
26,002 |
|
|
28,243 |
|
|
30,354 |
|
|
28,260 |
|
|
31,940 |
|
|
Other real estate
owned |
|
|
4,768 |
|
|
4,602 |
|
|
5,684 |
|
|
6,455 |
|
|
5,893 |
|
|
Total nonperforming
assets |
$ |
|
30,770 |
|
|
32,845 |
|
|
36,038 |
|
|
34,715 |
|
|
37,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Net Chargeoffs (Recoveries) |
|
|
|
|
|
|
|
|
|
09/30/16 |
06/30/16 |
03/31/16 |
12/31/15 |
09/30/15 |
|
New York and
other states* |
|
|
|
|
|
|
|
Commercial |
$ |
|
353 |
|
|
67 |
|
|
224 |
|
|
672 |
|
|
3 |
|
|
Real estate mortgage -
1 to 4 family |
|
|
471 |
|
|
973 |
|
|
771 |
|
|
963 |
|
|
1,159 |
|
|
Installment |
|
|
37 |
|
|
77 |
|
|
70 |
|
|
35 |
|
|
26 |
|
|
Total net
chargeoffs |
$ |
|
861 |
|
|
1,117 |
|
|
1,065 |
|
|
1,670 |
|
|
1,188 |
|
|
|
|
|
|
|
|
|
|
Florida |
|
|
|
|
|
|
|
Commercial |
$ |
|
- |
|
|
- |
|
|
- |
|
|
(2 |
) |
|
(3 |
) |
|
Real estate mortgage -
1 to 4 family |
|
|
- |
|
|
16 |
|
|
83 |
|
|
6 |
|
|
33 |
|
|
Installment |
|
|
3 |
|
|
1 |
|
|
16 |
|
|
13 |
|
|
4 |
|
|
Total net
chargeoffs |
$ |
|
3 |
|
|
17 |
|
|
99 |
|
|
17 |
|
|
34 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
Commercial |
$ |
|
353 |
|
|
67 |
|
|
224 |
|
|
670 |
|
|
- |
|
|
Real estate mortgage -
1 to 4 family |
|
|
471 |
|
|
989 |
|
|
854 |
|
|
969 |
|
|
1,192 |
|
|
Installment |
|
|
40 |
|
|
78 |
|
|
86 |
|
|
48 |
|
|
30 |
|
|
Total net
chargeoffs |
$ |
|
864 |
|
|
1,134 |
|
|
1,164 |
|
|
1,687 |
|
|
1,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
09/30/16 |
06/30/16 |
03/31/16 |
12/31/15 |
09/30/15 |
|
|
|
|
|
|
|
|
|
Total nonperforming
loans(1) |
$ |
|
26,002 |
|
|
28,243 |
|
|
30,354 |
|
|
28,260 |
|
|
31,940 |
|
|
Total nonperforming
assets(1) |
|
|
30,770 |
|
|
32,845 |
|
|
36,038 |
|
|
34,715 |
|
|
37,833 |
|
|
Total net
chargeoffs(2) |
|
|
864 |
|
|
1,134 |
|
|
1,164 |
|
|
1,687 |
|
|
1,222 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses(1) |
|
|
43,950 |
|
|
44,064 |
|
|
44,398 |
|
|
44,762 |
|
|
45,149 |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans |
|
|
0.77 |
% |
|
0.84 |
% |
|
0.92 |
% |
|
0.86 |
% |
|
0.97 |
% |
|
Nonperforming assets to
total assets |
|
|
0.64 |
% |
|
0.68 |
% |
|
0.76 |
% |
|
0.73 |
% |
|
0.80 |
% |
|
Allowance for loan
losses to total loans |
|
|
1.30 |
% |
|
1.32 |
% |
|
1.34 |
% |
|
1.36 |
% |
|
1.38 |
% |
|
Coverage ratio(1) |
|
|
169.0 |
% |
|
156.0 |
% |
|
146.3 |
% |
|
158.4 |
% |
|
141.4 |
% |
|
Annualized net
chargeoffs to average loans(2) |
|
|
0.10 |
% |
|
0.14 |
% |
|
0.14 |
% |
|
0.21 |
% |
|
0.15 |
% |
|
Allowance for loan
losses to annualized net chargeoffs(2) |
|
|
12.7x |
|
|
9.7x |
|
|
9.5x |
|
|
6.6x |
|
|
9.3x |
|
|
|
|
|
|
|
|
|
|
* 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) |
|
September 30, 2016 |
|
|
September 30, 2015 |
|
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available
for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government
sponsored enterprises |
$ |
|
109,488 |
|
|
|
408 |
|
1.49 |
% |
$ |
|
157,454 |
|
|
|
584 |
|
1.48 |
% |
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized
mortgage obligations-residential |
|
|
400,103 |
|
|
|
1,829 |
|
1.83 |
|
|
|
425,092 |
|
|
|
2,230 |
|
2.10 |
|
|
State and political
subdivisions |
|
|
953 |
|
|
|
20 |
|
8.39 |
|
|
|
1,937 |
|
|
|
34 |
|
7.02 |
|
|
Corporate bonds |
|
|
27,161 |
|
|
|
97 |
|
1.43 |
|
|
|
- |
|
|
|
- |
|
- |
|
|
Small Business
Administration-guaranteed participation securities |
|
|
85,305 |
|
|
|
445 |
|
2.09 |
|
|
|
96,109 |
|
|
|
497 |
|
2.07 |
|
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized
mortgage obligations-commercial |
|
|
10,247 |
|
|
|
36 |
|
1.41 |
|
|
|
10,532 |
|
|
|
37 |
|
1.41 |
|
|
Other |
|
|
685 |
|
|
|
4 |
|
2.34 |
|
|
|
685 |
|
|
|
4 |
|
2.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale |
|
|
633,942 |
|
|
|
2,839 |
|
1.79 |
|
|
|
691,809 |
|
|
|
3,386 |
|
1.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
other |
|
|
|
|
|
|
|
|
|
|
|
|
|
short-term
Investments |
|
|
683,777 |
|
|
|
866 |
|
0.50 |
|
|
|
652,274 |
|
|
|
408 |
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
|
10,644 |
|
|
|
156 |
|
5.86 |
|
|
|
9,969 |
|
|
|
153 |
|
6.17 |
|
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized
mortgage obligations-residential |
|
|
39,307 |
|
|
|
347 |
|
3.53 |
|
|
|
51,928 |
|
|
|
461 |
|
3.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity securities |
|
|
49,951 |
|
|
|
503 |
|
4.03 |
|
|
|
61,897 |
|
|
|
614 |
|
3.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
9,579 |
|
|
|
131 |
|
5.47 |
|
|
|
9,480 |
|
|
|
113 |
|
4.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
|
195,115 |
|
|
|
2,597 |
|
5.32 |
|
|
|
208,492 |
|
|
|
2,688 |
|
5.15 |
|
|
Residential mortgage
loans |
|
|
2,819,343 |
|
|
|
30,175 |
|
4.28 |
|
|
|
2,689,072 |
|
|
|
29,617 |
|
4.41 |
|
|
Home equity lines of
credit |
|
|
346,744 |
|
|
|
3,211 |
|
3.70 |
|
|
|
354,552 |
|
|
|
3,151 |
|
3.53 |
|
|
Installment loans |
|
|
8,331 |
|
|
|
195 |
|
9.36 |
|
|
|
8,678 |
|
|
|
183 |
|
8.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
|
3,369,533 |
|
|
|
36,178 |
|
4.29 |
|
|
|
3,260,794 |
|
|
|
35,639 |
|
4.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning assets |
|
|
4,746,782 |
|
|
|
40,517 |
|
3.41 |
|
|
|
4,676,254 |
|
|
|
40,160 |
|
3.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
(44,473 |
) |
|
|
|
|
|
|
(45,829 |
) |
|
|
|
|
|
Cash & non-interest
earning assets |
|
|
137,462 |
|
|
|
|
|
|
|
133,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
|
4,839,771 |
|
|
|
|
|
$ |
|
4,763,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
checking accounts |
$ |
|
780,058 |
|
|
|
120 |
|
0.06 |
% |
$ |
|
727,693 |
|
|
|
117 |
|
0.06 |
% |
|
Money market
accounts |
|
|
571,333 |
|
|
|
463 |
|
0.32 |
|
|
|
623,381 |
|
|
|
537 |
|
0.34 |
|
|
Savings |
|
|
1,284,533 |
|
|
|
504 |
|
0.16 |
|
|
|
1,251,031 |
|
|
|
603 |
|
0.19 |
|
|
Time deposits |
|
|
1,176,115 |
|
|
|
2,468 |
|
0.84 |
|
|
|
1,189,763 |
|
|
|
2,544 |
|
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing deposits |
|
|
3,812,039 |
|
|
|
3,555 |
|
0.37 |
|
|
|
3,791,868 |
|
|
|
3,801 |
|
0.40 |
|
|
Short-term
borrowings |
|
|
189,910 |
|
|
|
281 |
|
0.59 |
|
|
|
177,230 |
|
|
|
290 |
|
0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing liabilities |
|
|
4,001,949 |
|
|
|
3,836 |
|
0.38 |
|
|
|
3,969,098 |
|
|
|
4,091 |
|
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
377,455 |
|
|
|
|
|
|
|
360,080 |
|
|
|
|
|
|
Other liabilities |
|
|
27,496 |
|
|
|
|
|
|
|
27,524 |
|
|
|
|
|
|
Shareholders'
equity |
|
|
432,871 |
|
|
|
|
|
|
|
406,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
|
4,839,771 |
|
|
|
|
|
$ |
|
4,763,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
tax equivalent |
|
|
|
|
36,681 |
|
|
|
|
|
|
|
36,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
3.03 |
% |
|
|
|
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
to total interest
earning assets) |
|
|
|
|
3.09 |
% |
|
|
|
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment |
|
|
|
|
(14 |
) |
|
|
|
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
|
36,667 |
|
|
|
|
|
|
|
36,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS'
EQUITY- |
|
|
INTEREST RATES AND INTEREST DIFFERENTIAL |
|
|
(dollars in
thousands) |
|
Nine months ended |
|
|
Nine months ended |
|
|
(Unaudited) |
|
September 30, 2016 |
|
|
September 30, 2015 |
|
|
|
|
Average |
|
Interest |
Average |
|
|
Average |
|
Interest |
Average |
|
|
|
|
Balance |
|
|
Rate |
|
|
Balance |
|
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available
for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
U. S. government
sponsored enterprises |
$ |
|
97,281 |
|
|
|
1,067 |
|
1.46 |
% |
$ |
|
116,824 |
|
|
|
1,162 |
|
1.33 |
% |
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized
mortgage obligations-residential |
|
|
419,185 |
|
|
|
6,114 |
|
1.94 |
|
|
|
448,223 |
|
|
|
6,899 |
|
2.05 |
|
|
State and political
subdivisions |
|
|
1,007 |
|
|
|
60 |
|
7.94 |
|
|
|
1,989 |
|
|
|
108 |
|
7.32 |
|
|
Corporate bonds |
|
|
9,120 |
|
|
|
97 |
|
1.42 |
|
|
|
813 |
|
|
|
1 |
|
0.16 |
|
|
Small Business
Administration-guaranteed participation securities |
|
|
87,896 |
|
|
|
1,371 |
|
2.08 |
|
|
|
98,868 |
|
|
|
1,522 |
|
2.05 |
|
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized
mortgage obligations-commercial |
|
|
10,320 |
|
|
|
110 |
|
1.42 |
|
|
|
10,600 |
|
|
|
112 |
|
1.41 |
|
|
Other |
|
|
683 |
|
|
|
12 |
|
2.34 |
|
|
|
685 |
|
|
|
12 |
|
2.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities
available for sale |
|
|
625,492 |
|
|
|
8,831 |
|
1.88 |
|
|
|
678,002 |
|
|
|
9,816 |
|
1.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
other |
|
|
|
|
|
|
|
|
|
|
|
|
|
short-term
Investments |
|
|
675,948 |
|
|
|
2,542 |
|
0.50 |
|
|
|
662,879 |
|
|
|
1,231 |
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
|
10,202 |
|
|
|
464 |
|
6.06 |
|
|
|
9,965 |
|
|
|
461 |
|
6.17 |
|
|
Mortgage backed
securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized
mortgage obligations-residential |
|
|
42,192 |
|
|
|
1,123 |
|
3.55 |
|
|
|
55,569 |
|
|
|
1,419 |
|
3.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to
maturity securities |
|
|
52,394 |
|
|
|
1,587 |
|
4.04 |
|
|
|
65,534 |
|
|
|
1,880 |
|
3.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Reserve Bank
and Federal Home Loan Bank stock |
|
|
9,545 |
|
|
|
369 |
|
5.15 |
|
|
|
9,392 |
|
|
|
347 |
|
4.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
|
198,461 |
|
|
|
7,777 |
|
5.22 |
|
|
|
212,617 |
|
|
|
8,194 |
|
5.14 |
|
|
Residential mortgage
loans |
|
|
2,768,579 |
|
|
|
89,523 |
|
4.31 |
|
|
|
2,644,216 |
|
|
|
87,946 |
|
4.44 |
|
|
Home equity lines of
credit |
|
|
353,461 |
|
|
|
9,569 |
|
3.61 |
|
|
|
353,630 |
|
|
|
9,304 |
|
3.52 |
|
|
Installment loans |
|
|
8,435 |
|
|
|
579 |
|
9.15 |
|
|
|
8,236 |
|
|
|
534 |
|
8.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
|
3,328,936 |
|
|
|
107,448 |
|
4.30 |
|
|
|
3,218,699 |
|
|
|
105,978 |
|
4.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
earning assets |
|
|
4,692,315 |
|
|
|
120,777 |
|
3.43 |
|
|
|
4,634,506 |
|
|
|
119,252 |
|
3.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
(44,832 |
) |
|
|
|
|
|
|
(46,203 |
) |
|
|
|
|
|
Cash & non-interest
earning assets |
|
|
136,584 |
|
|
|
|
|
|
|
136,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
|
4,784,067 |
|
|
|
|
|
$ |
|
4,725,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
checking accounts |
$ |
|
758,314 |
|
|
|
350 |
|
0.06 |
% |
$ |
|
704,323 |
|
|
|
333 |
|
0.06 |
% |
|
Money market
accounts |
|
|
585,019 |
|
|
|
1,426 |
|
0.33 |
|
|
|
632,143 |
|
|
|
1,701 |
|
0.36 |
|
|
Savings |
|
|
1,273,565 |
|
|
|
1,712 |
|
0.18 |
|
|
|
1,243,544 |
|
|
|
1,860 |
|
0.20 |
|
|
Time deposits |
|
|
1,162,603 |
|
|
|
7,301 |
|
0.84 |
|
|
|
1,186,846 |
|
|
|
7,478 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
bearing deposits |
|
|
3,779,501 |
|
|
|
10,789 |
|
0.38 |
|
|
|
3,766,856 |
|
|
|
11,372 |
|
0.40 |
|
|
Short-term
borrowings |
|
|
182,453 |
|
|
|
800 |
|
0.58 |
|
|
|
184,079 |
|
|
|
936 |
|
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
bearing liabilities |
|
|
3,961,954 |
|
|
|
11,589 |
|
0.39 |
|
|
|
3,950,935 |
|
|
|
12,308 |
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
368,852 |
|
|
|
|
|
|
|
344,606 |
|
|
|
|
|
|
Other liabilities |
|
|
27,179 |
|
|
|
|
|
|
|
26,689 |
|
|
|
|
|
|
Shareholders'
equity |
|
|
426,082 |
|
|
|
|
|
|
|
402,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
|
4,784,067 |
|
|
|
|
|
$ |
|
4,725,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
tax equivalent |
|
|
|
|
109,188 |
|
|
|
|
|
|
|
106,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
|
|
3.04 |
% |
|
|
|
|
3.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
to total interest
earning assets) |
|
|
|
|
3.10 |
% |
|
|
|
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment |
|
|
|
|
(40 |
) |
|
|
|
|
|
|
(58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
|
109,148 |
|
|
|
|
|
|
|
106,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 revenue from net interest income and
fee income. We calculate the efficiency ratio by dividing
total noninterest expenses as determined under GAAP, but excluding
other real estate expense, net, by net interest income (fully
taxable equivalent) and total noninterest income as determined
under GAAP, but excluding net gains on the sale of nonperforming
loans and securities from this calculation. We believe that
this provides a reasonable measure of primary banking expenses
relative to primary banking revenue.
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) |
|
|
|
|
|
|
|
|
|
|
09/30/16 |
06/30/16 |
09/30/15 |
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
$ |
|
435,608 |
|
|
430,265 |
|
|
412,292 |
|
|
|
|
|
Less: Intangible
assets |
|
|
553 |
|
|
553 |
|
|
553 |
|
|
|
|
|
Tangible
equity |
|
|
435,055 |
|
|
429,712 |
|
|
411,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
95,614 |
|
|
95,493 |
|
|
95,149 |
|
|
|
|
|
Tangible book value per
share |
|
|
4.55 |
|
|
4.50 |
|
|
4.33 |
|
|
|
|
|
Book value per
share |
|
|
4.56 |
|
|
4.51 |
|
|
4.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity
to Tangible Assets |
|
|
|
|
|
|
|
|
Total Assets |
|
|
4,812,849 |
|
|
4,830,913 |
|
|
4,725,817 |
|
|
|
|
|
Less: Intangible
assets |
|
|
553 |
|
|
553 |
|
|
553 |
|
|
|
|
|
Tangible
assets |
|
|
4,812,296 |
|
|
4,830,360 |
|
|
4,725,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets |
|
|
9.04 |
% |
|
8.90 |
% |
|
8.71 |
% |
|
|
|
|
Equity to Assets |
|
|
9.05 |
% |
|
8.91 |
% |
|
8.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended |
|
9 Months Ended |
|
Efficiency
Ratio |
|
09/30/16 |
06/30/16 |
09/30/15 |
|
09/30/16 |
09/30/15 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
|
36,667 |
|
|
36,299 |
|
|
36,050 |
|
|
|
109,148 |
|
|
106,886 |
|
|
Taxable equivalent
adjustment |
|
|
14 |
|
|
12 |
|
|
19 |
|
|
|
40 |
|
|
58 |
|
|
Net interest income
(fully taxable equivalent) |
|
|
36,681 |
|
|
36,311 |
|
|
36,069 |
|
|
|
109,188 |
|
|
106,944 |
|
|
Non-interest
income |
|
|
4,729 |
|
|
5,199 |
|
|
4,365 |
|
|
|
14,500 |
|
|
13,442 |
|
|
Less: Net gain on
sale of building |
|
|
469 |
|
|
- |
|
|
- |
|
|
|
469 |
|
|
- |
|
|
Less: Net gain on
sale of nonperforming loans |
|
|
- |
|
|
24 |
|
|
- |
|
|
|
24 |
|
|
60 |
|
|
Less: Net gain on
securities |
|
|
- |
|
|
668 |
|
|
- |
|
|
|
668 |
|
|
249 |
|
|
Revenue used for
efficiency ratio |
|
|
40,941 |
|
|
40,818 |
|
|
40,434 |
|
|
|
122,527 |
|
|
120,077 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
expense |
|
|
23,049 |
|
|
23,974 |
|
|
23,464 |
|
|
|
70,462 |
|
|
67,452 |
|
|
Less: Other real
estate expense, net |
|
|
895 |
|
|
423 |
|
|
806 |
|
|
|
1,837 |
|
|
1,431 |
|
|
Expense used for
efficiency ratio |
|
|
22,154 |
|
|
23,551 |
|
|
22,658 |
|
|
|
68,625 |
|
|
66,021 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio |
|
|
54.11 |
% |
|
57.70 |
% |
|
56.04 |
% |
|
|
56.01 |
% |
|
54.98 |
% |
|
Contact: Kevin T. Timmons
Vice President/Treasurer
(518) 381-3607
TrustCo Bank Corporation... (NASDAQ:TRST)
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From Apr 2024 to May 2024
TrustCo Bank Corporation... (NASDAQ:TRST)
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