Attached files
| file | filename |
|---|---|
| 8-K - TRUSTCO BANK CORP NY 8-K 4-22-2013 - TRUSTCO BANK CORP N Y | form8k.htm |
Exhibit 99(a)
 |
News Release |
5 Sarnowski Drive, Glenville, New York, 12302
(518) 377-3311 Fax: (518) 381-3668
| Subsidiary: Trustco Bank | NASDAQ -- TRST |
|
Contact:
|
Kevin T. Timmons
|
Vice President/Treasurer
(518) 381-3607
FOR IMMEDIATE RELEASE:
TrustCo Announces First Quarter Earnings
Glenville, New York –April 22, 2013
TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that net income rose to $9.2 million in the quarter ended March 31, 2013, up 2.9% from $8.9 million for the quarter ended March 31, 2012. First quarter net income is up 24.2% over the same period two years ago and 44.4% over the same period four years ago. Return on average assets and return on average equity were 0.86% and 10.35%, respectively for the first quarter of 2013, compared to 0.84% and 10.45% for the first quarter of 2012.
TrustCo saw continued balance sheet growth in the first quarter of 2013 in both loans and deposits. Robert J. McCormick, President and Chief Executive Officer noted, “We began 2013 with solid first quarter results. In addition to bottom line growth, we continue to add profitable customer relationships on both the deposit and loan side. This contributed to the bottom line growth in the first quarter and will continue to do so for the balance of the year and beyond. As we have noted, our highly liquid balance sheet allows us to fund loan growth without having to overpay for deposits. In turn, this enabled us to significantly restructure our deposit mix during 2012, and should be of additional benefit when interest rates eventually begin to rise. We look forward to the balance of 2013 with optimism, though we note that our industry continues to face challenges as the economy remains fragile and interest rates remain at unprecedented levels. We will continue to take advantage of opportunities that are presented.”
Mr. McCormick also noted “We continue to see some signs of economic improvement in the markets in which we operate, particularly in Florida, although high levels of unemployment and other persistent issues continue to constrain any significant economic growth. We believe our long-term focus on traditional lending criteria and conservative balance sheet management has enabled us to maintain a strong balance sheet and continued profitability. 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.”
Page | 1
TrustCo continued to report solid growth in loans and deposits. On a year-over-year basis, average loans were up $167.7 million in the first quarter of 2013, compared to the same period in 2012, while average deposits increased $31.3 million over the same period. Mr. McCormick noted that, “The year-over-year growth of our loans and deposits reflects the long term strategic focus of the Bank and came despite the decision to enhance our mix of deposits during 2012, which reduced growth but improved our net interest margin.
While other banks have backed away from branches, our branch franchise continues to be the key to our long term plans. We recently celebrated the ten year anniversary of our branch expansion program, and have made significant progress expanding our loans and deposits through our branches. We expect that to continue as the new branches continue to grow. We also note that we have always designed our branches to be smaller and more cost effective than those built by many other banks, and have utilized open floor plans that help maximize the value of our branches. We remain mindful that fully achieving our goals for our newer branches will take time and continued hard work. We believe our success in growing customer relationships provides the basic building blocks that will help drive profit growth over the coming years.”
Asset quality, reserve coverage of nonperforming loans (NPLs) and reserve coverage of net charge-offs all improved from December 31, 2012 to March 31, 2013. NPLs declined to $49.9 million at March 31, 2013, compared to $52.7 million at December 31, 2012 and nonperforming assets (NPAs) declined to $59.7 million from $61.4 million over the same period. NPLs were equal to 1.84% of total loans at quarter-end, compared to 1.96% at year-end. For the first quarter of 2013 the allowance covered annualized first quarter net charge-offs by 5.3 times, compared to an annualized 3.7 times for the first quarter of 2012. The coverage ratio, or allowance for loan losses to NPLs, was 95.6% at March 31, 2013, compared to 91.0% at December 31, 2012. Overall, every asset quality indicator improved during the first quarter of 2013.
The net interest margin for the first quarter of 2013 was 3.19%, compared to 3.21% in the fourth quarter of 2012 and 3.23% in the first quarter of 2012.
At March 31, 2013 the tangible equity ratio was 8.17% compared to 7.87% at March 31, 2012 and 8.24% at December 31, 2012. Tangible book value per share ended the first quarter at $3.83 compared to $3.68 in the year-ago period.
TrustCo Bank Corp NY is a $4.4 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at March 31, 2013.
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.
Page | 2
A conference call to discuss first quarter 2013 results will be held at 9:00 a.m. Eastern Time on April 23, 2013. Those wishing to participate in the call may dial toll-free 1-888-317-6016. International callers must dial + 1-412-317-6016. A replay of the call will be available until April 24, 2013 by dialing 1-877-344-7529 (1-412-317-0088 for international callers), Conference Number 10027472. The call will also be audio webcast at: http://services.choruscall.com/links/trst130423.html, and will be available until April 23, 2014.
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. The “forward-looking statements” may include statements regarding future events or performance and statements regarding TrustCo’s ability to offer and sell securities under its shelf registration statement. 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: credit risk, the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, competition, the effect of changes in financial services laws and regulations (including laws concerning taxation, banking and securities), real estate and collateral values, changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board; changes in local market areas and general business and economic trends and the matters described under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2012, as amended, and in our subsequent securities filings.
Page | 3
TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
|
Three Months Ended
|
||||||||||||
|
03/31/13
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12/31/12
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03/31/12
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||||||||||
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Summary of operations
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||||||||||||
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Net interest income (TE)
|
$ | 33,707 | 33,718 | 33,637 | ||||||||
|
Provision for loan losses
|
2,000 | 3,000 | 3,100 | |||||||||
|
Net securities transactions
|
2 | 763 | 677 | |||||||||
|
Noninterest income
|
4,590 | 5,398 | 4,333 | |||||||||
|
Noninterest expense
|
21,557 | 21,150 | 21,136 | |||||||||
|
Net income
|
9,168 | 9,806 | 8,909 | |||||||||
|
Per common share
|
||||||||||||
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Net income per share:
|
||||||||||||
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- Basic
|
$ | 0.097 | 0.104 | 0.095 | ||||||||
|
- Diluted
|
$ | 0.097 | 0.104 | 0.095 | ||||||||
|
Cash dividends
|
0.066 | 0.066 | 0.066 | |||||||||
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Tangible Book value at period end
|
3.83 | 3.81 | 3.68 | |||||||||
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Market price at period end
|
5.58 | 5.28 | 5.71 | |||||||||
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At period end
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||||||||||||
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Full time equivalent employees
|
761 | 759 | 734 | |||||||||
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Full service banking offices
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138 | 138 | 137 | |||||||||
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Performance ratios
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||||||||||||
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Return on average assets
|
0.86 | % | 0.91 | 0.84 | ||||||||
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Return on average equity
|
10.35 | 10.88 | 10.45 | |||||||||
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Efficiency (1)
|
54.33 | 53.11 | 53.12 | |||||||||
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Net interest spread (TE)
|
3.13 | 3.15 | 3.14 | |||||||||
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Net interest margin (TE)
|
3.19 | 3.21 | 3.23 | |||||||||
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Dividend payout ratio
|
67.33 | 63.00 | 68.91 | |||||||||
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Capital ratio at period end
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||||||||||||
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Consolidated tangible equity to tangible assets (2)
|
8.17 | 8.24 | 7.87 | |||||||||
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Asset quality analysis at period end
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||||||||||||
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Nonperforming loans to total loans
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1.84 | 1.96 | 2.03 | |||||||||
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Nonperforming assets to total assets
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1.35 | 1.41 | 1.25 | |||||||||
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Allowance for loan losses to total loans
|
1.76 | 1.79 | 1.92 | |||||||||
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Coverage ratio (3)
|
1.0 | x | 0.9 | 0.9 | ||||||||
|
(1)
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Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions).
|
|
(2)
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The tangible equity ratio excludes $553,000 of intangibles from both equity and assets.
|
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(3)
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Calculated as allowance for loan losses divided by total nonperforming loans.
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TE = Taxable equivalent.
Page | 4
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/2013
|
12/31/2012
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9/30/2012
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6/30/2012
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3/31/2012
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||||||||||||||||
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Interest and dividend income:
|
||||||||||||||||||||
|
Interest and fees on loans
|
$ | 31,481 | 31,776 | 32,103 | 32,277 | 32,425 | ||||||||||||||
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Interest and dividends on securities available for sale:
|
||||||||||||||||||||
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U. S. government sponsored enterprises
|
816 | 1,191 | 1,996 | 2,606 | 2,304 | |||||||||||||||
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State and political subdivisions
|
191 | 295 | 340 | 368 | 410 | |||||||||||||||
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Mortgage-backed securities and collateralized mortgage obligations-residential
|
2,769 | 2,237 | 2,003 | 1,364 | 1,093 | |||||||||||||||
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Corporate bonds
|
218 | 232 | 529 | 648 | 822 | |||||||||||||||
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Small Business Administration-guaranteed participation securities
|
496 | 276 | 43 | - | - | |||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations-commercial
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29 | - | - | - | - | |||||||||||||||
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Other securities
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5 | 5 | 4 | 5 | 5 | |||||||||||||||
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Total interest and dividends on securities available for sale
|
4,524 | 4,236 | 4,915 | 4,991 | 4,634 | |||||||||||||||
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Interest on held to maturity securities:
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||||||||||||||||||||
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U. S. government sponsored enterprises
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- | - | - | - | 25 | |||||||||||||||
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Mortgage-backed securities and collateralized mortgage obligations-residential
|
789 | 823 | 976 | 1,198 | 1,290 | |||||||||||||||
|
Corporate bonds
|
312 | 385 | 385 | 387 | 509 | |||||||||||||||
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Total interest on held to maturity securities
|
1,101 | 1,208 | 1,361 | 1,585 | 1,824 | |||||||||||||||
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Federal Reserve Bank and Federal Home Loan Bank stock
|
119 | 127 | 120 | 149 | 90 | |||||||||||||||
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Interest on federal funds sold and other short-term investments
|
245 | 265 | 258 | 299 | 320 | |||||||||||||||
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Total interest income
|
37,470 | 37,612 | 38,757 | 39,301 | 39,293 | |||||||||||||||
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Interest expense:
|
||||||||||||||||||||
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Interest on deposits:
|
||||||||||||||||||||
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Interest-bearing checking
|
80 | 80 | 79 | 78 | 78 | |||||||||||||||
|
Savings
|
916 | 921 | 870 | 979 | 1,102 | |||||||||||||||
|
Money market deposit accounts
|
685 | 703 | 673 | 770 | 923 | |||||||||||||||
|
Time deposits
|
1,820 | 1,967 | 2,629 | 3,230 | 3,418 | |||||||||||||||
|
Interest on short-term borrowings
|
364 | 361 | 348 | 378 | 388 | |||||||||||||||
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Total interest expense
|
3,865 | 4,032 | 4,599 | 5,435 | 5,909 | |||||||||||||||
|
Net interest income
|
33,605 | 33,580 | 34,158 | 33,866 | 33,384 | |||||||||||||||
|
Provision for loan losses
|
2,000 | 3,000 | 2,900 | 3,000 | 3,100 | |||||||||||||||
|
Net interest income after provision for loan losses
|
31,605 | 30,580 | 31,258 | 30,866 | 30,284 | |||||||||||||||
|
Noninterest income:
|
||||||||||||||||||||
|
Trustco Financial Services income
|
1,421 | 1,815 | 1,145 | 1,407 | 1,394 | |||||||||||||||
|
Fees for services to customers
|
2,887 | 3,386 | 3,234 | 2,939 | 2,732 | |||||||||||||||
|
Net gain on securities transactions
|
2 | 763 | 666 | 55 | 677 | |||||||||||||||
|
Other
|
282 | 197 | 172 | 176 | 207 | |||||||||||||||
|
Total noninterest income
|
4,592 | 6,161 | 5,217 | 4,577 | 5,010 | |||||||||||||||
|
Noninterest expenses:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
8,178 | 8,427 | 7,587 | 7,519 | 7,743 | |||||||||||||||
|
Net occupancy expense
|
4,053 | 3,889 | 3,756 | 3,817 | 3,795 | |||||||||||||||
|
Equipment expense
|
1,718 | 1,637 | 1,316 | 1,600 | 1,520 | |||||||||||||||
|
Professional services
|
1,420 | 1,458 | 1,657 | 1,489 | 1,436 | |||||||||||||||
|
Outsourced services
|
1,350 | 1,175 | 1,350 | 1,347 | 1,250 | |||||||||||||||
|
Advertising expense
|
730 | 1,037 | 935 | 1,060 | 809 | |||||||||||||||
|
FDIC and other insurance
|
1,010 | 1,007 | 983 | 953 | 880 | |||||||||||||||
|
Other real estate expense, net
|
749 | 375 | 1,210 | 665 | 966 | |||||||||||||||
|
Other
|
2,349 | 2,145 | 1,849 | 2,599 | 2,737 | |||||||||||||||
|
Total noninterest expenses
|
21,557 | 21,150 | 20,643 | 21,049 | 21,136 | |||||||||||||||
|
Income before taxes
|
14,640 | 15,591 | 15,832 | 14,394 | 14,158 | |||||||||||||||
|
Income taxes
|
5,472 | 5,785 | 6,079 | 5,328 | 5,249 | |||||||||||||||
|
Net income
|
$ | 9,168 | 9,806 | 9,753 | 9,066 | 8,909 | ||||||||||||||
|
Net income per Common Share:
|
||||||||||||||||||||
|
- Basic
|
$ | 0.097 | 0.104 | 0.104 | 0.097 | 0.095 | ||||||||||||||
|
- Diluted
|
0.097 | 0.104 | 0.104 | 0.097 | 0.095 | |||||||||||||||
|
Average basic shares (thousands)
|
94,068 | 93,824 | 93,692 | 93,561 | 93,546 | |||||||||||||||
|
Average diluted shares (thousands)
|
94,073 | 93,828 | 93,700 | 93,562 | 93,546 | |||||||||||||||
|
Note: Taxable equivalent net interest income
|
$ | 33,707 | 33,718 | 34,321 | 33,993 | 33,637 | ||||||||||||||
Page | 5
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
|
3/31/2013
|
12/31/2012
|
9/30/2012
|
6/30/2012
|
3/31/2012
|
||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||
|
Cash and due from banks
|
$ | 39,512 | 55,789 | 40,354 | 36,589 | 39,426 | ||||||||||||||
|
Federal funds sold and other short term investments
|
405,262 | 488,227 | 402,290 | 486,049 | 486,055 | |||||||||||||||
|
Total cash and cash equivalents
|
444,774 | 544,016 | 442,644 | 522,638 | 525,481 | |||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||
|
U. S. government sponsored enterprises
|
263,165 | 263,108 | 427,798 | 643,189 | 744,725 | |||||||||||||||
|
States and political subdivisions
|
15,265 | 26,457 | 33,857 | 36,978 | 38,367 | |||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations-residential
|
612,555 | 518,776 | 515,879 | 354,285 | 219,301 | |||||||||||||||
|
Corporate bonds
|
59,239 | 26,529 | 49,296 | 73,311 | 81,654 | |||||||||||||||
|
Small Business Administration-guaranteed participation securities
|
115,464 | 76,562 | 25,338 | - | - | |||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations-commercial
|
11,136 | - | - | - | - | |||||||||||||||
|
Other securities
|
660 | 660 | 660 | 660 | 660 | |||||||||||||||
|
Total securities available for sale
|
1,077,484 | 912,092 | 1,052,828 | 1,108,423 | 1,084,707 | |||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||
|
U. S. government sponsored enterprises
|
- | - | - | - | - | |||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations-residential
|
98,038 | 108,471 | 120,877 | 133,562 | 143,629 | |||||||||||||||
|
Corporate bonds
|
19,935 | 34,955 | 35,074 | 35,193 | 35,312 | |||||||||||||||
|
Total held to maturity securities
|
117,973 | 143,426 | 155,951 | 168,755 | 178,941 | |||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
9,632 | 9,632 | 9,632 | 9,632 | 9,004 | |||||||||||||||
|
Loans:
|
||||||||||||||||||||
|
Commercial
|
212,637 | 219,577 | 217,431 | 235,347 | 235,513 | |||||||||||||||
|
Residential mortgage loans
|
2,154,188 | 2,126,668 | 2,056,972 | 2,003,046 | 1,970,278 | |||||||||||||||
|
Home equity line of credit
|
332,111 | 333,909 | 327,083 | 317,157 | 314,668 | |||||||||||||||
|
Installment loans
|
4,831 | 4,579 | 4,455 | 4,071 | 3,855 | |||||||||||||||
|
Loans, net of deferred fees and costs
|
2,703,767 | 2,684,733 | 2,605,941 | 2,559,621 | 2,524,314 | |||||||||||||||
|
Less:
|
||||||||||||||||||||
|
Allowance for loan losses
|
47,658 | 47,927 | 47,364 | 48,018 | 48,535 | |||||||||||||||
|
Net loans
|
2,656,109 | 2,636,806 | 2,558,577 | 2,511,603 | 2,475,779 | |||||||||||||||
|
Bank premises and equipment, net
|
35,787 | 36,239 | 37,251 | 37,868 | 37,099 | |||||||||||||||
|
Other assets
|
69,998 | 64,402 | 61,290 | 62,480 | 63,432 | |||||||||||||||
|
Total assets
|
$ | 4,411,757 | 4,346,613 | 4,318,173 | 4,421,399 | 4,374,443 | ||||||||||||||
|
LIABILITIES:
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Demand
|
$ | 298,243 | 300,544 | 292,350 | 283,873 | 281,628 | ||||||||||||||
|
Interest-bearing checking
|
579,077 | 560,064 | 536,892 | 528,101 | 507,510 | |||||||||||||||
|
Savings accounts
|
1,213,226 | 1,198,517 | 1,167,927 | 1,122,208 | 1,068,058 | |||||||||||||||
|
Money market deposit accounts
|
656,577 | 667,589 | 668,064 | 644,627 | 631,761 | |||||||||||||||
|
Certificates of deposit (in denominations of $100,000 or more)
|
384,559 | 352,734 | 359,246 | 452,043 | 467,447 | |||||||||||||||
|
Other time accounts
|
725,998 | 724,745 | 751,974 | 867,798 | 894,946 | |||||||||||||||
|
Total deposits
|
3,857,680 | 3,804,193 | 3,776,453 | 3,898,650 | 3,851,350 | |||||||||||||||
|
Short-term borrowings
|
171,019 | 159,846 | 161,751 | 150,718 | 159,002 | |||||||||||||||
|
Accrued expenses and other liabilities
|
22,169 | 23,776 | 22,352 | 22,124 | 19,445 | |||||||||||||||
|
Total liabilities
|
4,050,868 | 3,987,815 | 3,960,556 | 4,071,492 | 4,029,797 | |||||||||||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||||||||||||||
|
Capital stock
|
98,912 | 98,912 | 98,912 | 98,912 | 98,912 | |||||||||||||||
|
Surplus
|
174,386 | 174,899 | 175,284 | 175,773 | 176,199 | |||||||||||||||
|
Undivided profits
|
135,373 | 132,378 | 128,750 | 125,153 | 122,235 | |||||||||||||||
|
Accumulated other comprehensive income (loss), net of tax
|
(169 | ) | 1,558 | 4,879 | 1,585 | 53 | ||||||||||||||
|
Treasury stock at cost
|
(47,613 | ) | (48,949 | ) | (50,208 | ) | (51,516 | ) | (52,753 | ) | ||||||||||
|
Total shareholders' equity
|
360,889 | 358,798 | 357,617 | 349,907 | 344,646 | |||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 4,411,757 | 4,346,613 | 4,318,173 | 4,421,399 | 4,374,443 | ||||||||||||||
|
Outstanding shares (thousands)
|
94,071 | 93,935 | 93,807 | 93,674 | 93,549 | |||||||||||||||
Page | 6
NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
Nonperforming Assets
|
03/31/13
|
12/31/12
|
09/30/12
|
06/30/12
|
03/31/12
|
||||||||||||||||
|
New York and other states*
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$ | 5,978 | 6,635 | 5,880 | 5,656 | 5,667 | ||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
34,027 | 35,286 | 32,593 | 29,167 | 29,894 | |||||||||||||||
|
Installment
|
35 | 6 | 71 | 1 | 9 | |||||||||||||||
|
Total non-accrual loans
|
40,040 | 41,927 | 38,544 | 34,824 | 35,570 | |||||||||||||||
|
Other nonperforming real estate mortgages - 1 to 4 family
|
225 | 231 | 238 | 243 | 306 | |||||||||||||||
|
Total nonperforming loans
|
40,265 | 42,158 | 38,782 | 35,067 | 35,876 | |||||||||||||||
|
Other real estate owned
|
4,461 | 2,979 | 2,716 | 2,787 | 2,411 | |||||||||||||||
|
Total nonperforming assets
|
$ | 44,726 | 45,137 | 41,498 | 37,854 | 38,287 | ||||||||||||||
|
Florida
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$ | 2,595 | 2,698 | 2,698 | 8,435 | 5,874 | ||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
7,013 | 7,820 | 8,438 | 7,954 | 9,404 | |||||||||||||||
|
Installment
|
1 | 1 | 7 | 1 | - | |||||||||||||||
|
Total non-accrual loans
|
9,609 | 10,519 | 11,143 | 16,390 | 15,278 | |||||||||||||||
|
Other nonperforming real estate mortgages - 1 to 4 family
|
- | - | - | - | - | |||||||||||||||
|
Total nonperforming loans
|
9,609 | 10,519 | 11,143 | 16,390 | 15,278 | |||||||||||||||
|
Other real estate owned
|
5,406 | 5,726 | 5,975 | 1,083 | 1,293 | |||||||||||||||
|
Total nonperforming assets
|
$ | 15,015 | 16,245 | 17,118 | 17,473 | 16,571 | ||||||||||||||
|
Total
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$ | 8,573 | 9,333 | 8,578 | 14,091 | 11,541 | ||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
41,040 | 43,106 | 41,031 | 37,121 | 39,298 | |||||||||||||||
|
Installment
|
36 | 7 | 78 | 2 | 9 | |||||||||||||||
|
Total non-accrual loans
|
49,649 | 52,446 | 49,687 | 51,214 | 50,848 | |||||||||||||||
|
Other nonperforming real estate mortgages - 1 to 4 family
|
225 | 231 | 238 | 243 | 306 | |||||||||||||||
|
Total nonperforming loans
|
49,874 | 52,677 | 49,925 | 51,457 | 51,154 | |||||||||||||||
|
Other real estate owned
|
9,867 | 8,705 | 8,691 | 3,870 | 3,704 | |||||||||||||||
|
Total nonperforming assets
|
$ | 59,741 | 61,382 | 58,616 | 55,327 | 54,858 | ||||||||||||||
|
Quarterly Net Chargeoffs
|
||||||||||||||||||||
|
03/31/13
|
12/31/12
|
09/30/12
|
06/30/12
|
03/31/12
|
||||||||||||||||
|
New York and other states*
|
||||||||||||||||||||
|
Commercial
|
$ | 248 | 152 | 9 | 713 | 321 | ||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
1,563 | 1,410 | 2,157 | 1,844 | 1,136 | |||||||||||||||
|
Installment
|
15 | 72 | 7 | 7 | (8 | ) | ||||||||||||||
|
Total net chargeoffs
|
$ | 1,826 | 1,634 | 2,173 | 2,564 | 1,449 | ||||||||||||||
|
Florida
|
||||||||||||||||||||
|
Commercial
|
$ | 99 | (18 | ) | 736 | 288 | 160 | |||||||||||||
|
Real estate mortgage - 1 to 4 family
|
344 | 810 | 644 | 665 | 1,673 | |||||||||||||||
|
Installment
|
- | 12 | 1 | - | - | |||||||||||||||
|
Total net chargeoffs
|
$ | 443 | 804 | 1,381 | 953 | 1,833 | ||||||||||||||
|
Total
|
||||||||||||||||||||
|
Commercial
|
$ | 347 | 134 | 745 | 1,001 | 481 | ||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
1,907 | 2,220 | 2,801 | 2,509 | 2,809 | |||||||||||||||
|
Installment
|
15 | 84 | 8 | 7 | (8 | ) | ||||||||||||||
|
Total net chargeoffs
|
$ | 2,269 | 2,438 | 3,554 | 3,517 | 3,282 | ||||||||||||||
|
Asset Quality Ratios
|
||||||||||||||||||||
|
03/31/13
|
12/31/12
|
09/30/12
|
06/30/12
|
03/31/12
|
||||||||||||||||
|
Total nonperforming loans(1)
|
$ | 49,874 | 52,677 | 49,925 | 51,457 | 51,154 | ||||||||||||||
|
Total nonperforming assets(1)
|
59,741 | 61,382 | 58,616 | 55,327 | 54,858 | |||||||||||||||
|
Total net chargeoffs(2)
|
2,269 | 2,438 | 3,554 | 3,517 | 3,282 | |||||||||||||||
|
Allowance for loan losses(1)
|
47,658 | 47,927 | 47,364 | 48,018 | 48,535 | |||||||||||||||
|
Nonperforming loans to total loans(1)
|
1.84 | % | 1.96 | % | 1.92 | % | 2.01 | % | 2.03 | % | ||||||||||
|
Nonperforming assets to total assets(1)
|
1.35 | % | 1.41 | % | 1.36 | % | 1.25 | % | 1.25 | % | ||||||||||
|
Allowance for loan losses to total loans(1)
|
1.76 | % | 1.79 | % | 1.82 | % | 1.88 | % | 1.92 | % | ||||||||||
|
Coverage ratio(1)
|
95.6 | % | 91.0 | % | 94.9 | % | 93.3 | % | 94.9 | % | ||||||||||
|
Annualized net chargeoffs to average loans(2)
|
0.34 | % | 0.37 | % | 0.55 | % | 0.55 | % | 0.52 | % | ||||||||||
|
Allowance for loan losses to annualized net chargeoffs(2)
|
5.3 | x | 4.9 | x | 3.3 | x | 3.4 | x | 3.7 | x | ||||||||||
* Includes New York, New Jersey, Vermont and Massachusetts.
|
(1)
|
At period-end
|
|
(2)
|
For the period ended
|
Page | 7
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY-
INTEREST RATES AND INTEREST DIFFERENTIAL
|
(dollars in thousands)
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||
|
(Unaudited)
|
March 31, 2013
|
March 31, 2012
|
||||||||||||||||||||||
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
|
Balance
|
|
Rate
|
Balance
|
|
Rate
|
|||||||||||||||||||
|
Assets
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||||||
|
U. S. government sponsored enterprises
|
$ | 270,953 | 816 | 1.20 | % | $ | 590,746 | 2,304 | 1.56 | % | ||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations-residential
|
557,408 | 2,769 | 1.99 | 204,659 | 1,093 | 2.14 | ||||||||||||||||||
|
State and political subdivisions
|
18,556 | 285 | 6.15 | 40,013 | 603 | 6.02 | ||||||||||||||||||
|
Corporate bonds
|
47,358 | 218 | 1.84 | 93,168 | 822 | 3.53 | ||||||||||||||||||
|
Small Business Administration-guaranteed participation securities
|
99,683 | 496 | 1.99 | - | - | 0.00 | ||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations-commercial
|
8,378 | 29 | 1.38 | - | - | 0.00 | ||||||||||||||||||
|
Other
|
660 | 5 | 3.03 | 660 | 5 | 3.03 | ||||||||||||||||||
|
Total securities available for sale
|
1,002,996 | 4,618 | 1.84 | 929,246 | 4,827 | 2.08 | ||||||||||||||||||
|
Federal funds sold and other short-term Investments
|
405,953 | 245 | 0.24 | 512,380 | 320 | 0.25 | ||||||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||||||
|
U. S. government sponsored enterprises
|
- | - | 0.00 | 4,286 | 25 | 2.38 | ||||||||||||||||||
|
Corporate bonds
|
22,271 | 312 | 5.61 | 52,897 | 509 | 3.85 | ||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations-residential
|
103,607 | 789 | 3.05 | 143,146 | 1,290 | 3.60 | ||||||||||||||||||
|
Total held to maturity securities
|
125,878 | 1,101 | 3.50 | 200,329 | 1,824 | 3.64 | ||||||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
9,632 | 119 | 4.94 | 9,004 | 90 | 4.00 | ||||||||||||||||||
|
Commercial loans
|
216,210 | 2,847 | 5.27 | 241,269 | 3,363 | 5.57 | ||||||||||||||||||
|
Residential mortgage loans
|
2,136,067 | 25,684 | 4.83 | 1,962,648 | 26,112 | 5.33 | ||||||||||||||||||
|
Home equity lines of credit
|
333,434 | 2,800 | 3.41 | 314,999 | 2,865 | 3.66 | ||||||||||||||||||
|
Installment loans
|
4,528 | 158 | 14.20 | 3,615 | 145 | 16.15 | ||||||||||||||||||
|
Loans, net of unearned income
|
2,690,239 | 31,489 | 4.70 | 2,522,531 | 32,485 | 5.16 | ||||||||||||||||||
|
Total interest earning assets
|
4,234,698 | 37,572 | 3.56 | 4,173,490 | 39,546 | 3.79 | ||||||||||||||||||
|
Allowance for loan losses
|
(48,458 | ) | (49,840 | ) | ||||||||||||||||||||
|
Cash & non-interest earning assets
|
152,902 | 143,702 | ||||||||||||||||||||||
|
Total assets
|
$ | 4,339,142 | $ | 4,267,352 | ||||||||||||||||||||
|
Liabilities and shareholders' equity
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Interest bearing checking accounts
|
$ | 552,575 | 80 | 0.06 | % | $ | 482,362 | 78 | 0.06 | % | ||||||||||||||
|
Money market accounts
|
659,172 | 685 | 0.42 | 631,892 | 923 | 0.59 | ||||||||||||||||||
|
Savings
|
1,203,580 | 916 | 0.31 | 1,019,597 | 1,102 | 0.43 | ||||||||||||||||||
|
Time deposits
|
1,088,877 | 1,820 | 0.68 | 1,365,104 | 3,418 | 1.01 | ||||||||||||||||||
|
Total interest bearing deposits
|
3,504,204 | 3,501 | 0.41 | 3,498,955 | 5,521 | 0.63 | ||||||||||||||||||
|
Short-term borrowings
|
168,059 | 364 | 0.88 | 145,484 | 388 | 1.07 | ||||||||||||||||||
|
Total interest bearing liabilities
|
3,672,263 | 3,865 | 0.43 | 3,644,439 | 5,909 | 0.65 | ||||||||||||||||||
|
Demand deposits
|
287,700 | 261,650 | ||||||||||||||||||||||
|
Other liabilities
|
20,003 | 18,230 | ||||||||||||||||||||||
|
Shareholders' equity
|
359,176 | 343,033 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 4,339,142 | $ | 4,267,352 | ||||||||||||||||||||
|
Net interest income , tax equivalent
|
33,707 | 33,637 | ||||||||||||||||||||||
|
Net interest spread
|
3.13 | % | 3.14 | % | ||||||||||||||||||||
|
Net interest margin (net interest income to total interest earning assets)
|
3.19 | % | 3.23 | % | ||||||||||||||||||||
|
Tax equivalent adjustment
|
(102 | ) | (253 | ) | ||||||||||||||||||||
|
Net interest income
|
33,605 | 33,384 | ||||||||||||||||||||||
Page | 8
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 below as recurring revenue. We believe that this provides one reasonable measure of core expenses relative to core 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 and efficiency ratio to the underlying GAAP numbers is set forth below.
Non-GAAP Financial Measures Reconciliation
(dollars in thousands, except per share amounts)
(Unaudited)
|
03/31/13
|
12/31/12
|
09/30/12
|
06/30/12
|
03/31/12
|
||||||||||||||||
|
Tangible Book Value Per Share
|
||||||||||||||||||||
|
Equity
|
$ | 360,889 | 358,798 | 357,617 | 349,907 | 344,646 | ||||||||||||||
|
Less: Intangible assets
|
553 | 553 | 553 | 553 | 553 | |||||||||||||||
|
Tangible equity
|
360,336 | 358,245 | 357,064 | 349,354 | 344,093 | |||||||||||||||
|
Shares outstanding
|
94,071 | 93,935 | 93,807 | 93,674 | 93,549 | |||||||||||||||
|
Tangible book value per share
|
3.83 | 3.81 | 3.81 | 3.73 | 3.68 | |||||||||||||||
|
Book value per share
|
3.84 | 3.82 | 3.81 | 3.74 | 3.68 | |||||||||||||||
|
Tangible Equity to Tangible Assets
|
||||||||||||||||||||
|
Total Assets
|
4,411,757 | 4,346,613 | 4,318,173 | 4,421,399 | 4,374,443 | |||||||||||||||
|
Less: Intangible assets
|
553 | 553 | 553 | 553 | 553 | |||||||||||||||
|
Tangible assets
|
4,411,204 | 4,346,060 | 4,317,620 | 4,420,846 | 4,373,890 | |||||||||||||||
|
Tangible Equity to Tangible Assets
|
8.17 | % | 8.24 | % | 8.27 | % | 7.90 | % | 7.87 | % | ||||||||||
|
Equity to Assets
|
8.18 | % | 8.25 | % | 8.28 | % | 7.91 | % | 7.88 | % | ||||||||||
|
3 Months Ended
|
Year Ended
|
|||||||||||||||||||||||||||
|
Efficiency Ratio
|
03/31/13
|
12/31/12
|
09/30/12
|
06/30/12
|
03/31/12
|
12/31/12
|
12/31/11
|
|||||||||||||||||||||
|
Net interest income (fully taxable equivalent)
|
$ | 33,707 | 33,718 | 34,321 | 33,993 | 33,637 | 135,669 | 135,717 | ||||||||||||||||||||
|
Non-interest income
|
4,592 | 6,161 | 5,217 | 4,577 | 5,010 | 20,964 | 18,773 | |||||||||||||||||||||
|
Less: Net gain on securities
|
2 | 763 | 666 | 55 | 677 | 2,161 | 1,428 | |||||||||||||||||||||
|
Recurring revenue
|
38,297 | 39,116 | 38,872 | 38,515 | 37,970 | 154,472 | 153,062 | |||||||||||||||||||||
|
Total Noninterest expense
|
21,557 | 21,150 | 20,643 | 21,049 | 21,136 | 83,977 | 82,142 | |||||||||||||||||||||
|
Less: Other real estate expense, net
|
749 | 375 | 1,210 | 665 | 966 | 3,216 | 5,693 | |||||||||||||||||||||
|
Recurring expense
|
20,808 | 20,775 | 19,433 | 20,384 | 20,170 | 80,761 | 76,449 | |||||||||||||||||||||
|
Efficiency Ratio
|
54.33 | % | 53.11 | % | 49.99 | % | 52.92 | % | 53.12 | % | 52.28 | % | 49.95 | % | ||||||||||||||
Page | 9