TRST - Earnings call 3 2023 | TrustCo Bank Corp NY

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Operator

Good day, and welcome to the TrustCo Bank Corp Earnings Call and Webcast. [Operator Instructions] Before proceeding, we would like to mention that this presentation may contain forward-looking information about TrustCo Bank Corp New York that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those expressed in or implied by such achievements, statements, various risks, uncertainties and other factors. More detailed information about these and other risk factors can be found in our press release that preceded this call and in the Risk Factors and forward-looking Statements section of our annual report on Form 10-K and as updated by our quarterly reports on Form 10-Q.

Forward-looking statements made on this call are valid only as of the date hereof. required disclaims or to of developments except may company to this this the as events law. reflect after be and any update obligation information call, -- applicable by the date

is that are today's also press our CEO. XX is measures to recorded. financial days, go earnings that under U.S. to Chairman, our comparable our this available time, GAAP. the press the we derived year accordance like of be release, of reconciliations figures for determined statements audio today's discuss McCormick, President financial the trustcobank.com. and most are X certain website, During event will Relations measures release. note turn included call, over Investors webcast At such A will earnings call from replay would tab the conference and The available in which not Mr. I available in being in to J. our with will the described be non-GAAP GAAP Robert Please financial of Please for call as ahead.

Robert McCormick

everyone, for and thank call. the morning, joining Good you

the review and a the me I As I'm TrustCo the end. Salvador. With the portfolio, Mike of Scot highlights. Rob Mike, time as loan provide cover will regular leaving provide follow Scot Ozimek detailed usual numbers. will President the Bank. We'll a format for are call. for of questions Cormack, said, host the will CFO, at our and

really the very we from bank is strong. of. are What second are us Our others results here differentiates something at quarter proud

careful sheet true business model, management. lending from wavered practices our maintaining not our tried have and balance and We

well blueprint. competitors' be capitalized, feeling years the don't their keep organic planning longer. now is enabled We X up debt to maybe rates, stay own supporting We plan focused knew dry. remain That free this may fund pressure and loan on just tide has for months, to our While X we'll our be us kept growth, turn powder we and to and would growth. ago we borrowing with

an share. reached $X milestone of loan portfolio grew choice lion's industry-leading billion making the We the and hitting portfolio a Our through quarter, aspects first strategically high mortgage with up our lending. all responsible of all-time product our over

sacrificed saw We X.XX%, have quantity. just total loans the of least quarter not recoveries. net QX, best XX consecutive at in for well quality as In we loans years our nonperforming seventh for as to

categories our the to and beginning of continue of diversified the deposit have granular the from build portfolio year. rebound seen We upon foundation all and

was relationship Our $XX,XXX, of the average deposit relationship success which focus. our is proof building of

enables our lower which Our customer stability relationships. and that to they product market Also split on ups the to quarter, while new those interest can difference and know loan we customers loans rate rolled strength downs. a out rely through reprice retaining during us critical

to of repricing, out addition their benefits low by mortgage. customers the who great have In trapped for felt rate it works

before. Overall, Bank where topic been loan expect if takes of trend might have and we We feedback off, on our will making initiative portfolio great a not to the product of the further is that yield. the conversation we contribute TrustCo upward have received

since proud every very we paid of substantial XXXX. dividend, have our are we always, which quarter As

capitalize Our presented. next, TrustCo through shareholders to is Whatever have Bank been opportunities on comes on us the conditions. economic to able all count ready

will us and numbers. on give color Scot Mike? portfolio. take give the the detail Mike loan we your questions. will will Now then on

Michael Ozimek

now financial morning, I everyone. good results third you, for will Rob, and review XXXX. of the quarter Thank TrustCo's

Average equity net of a on X.XX%, compared XX, quarter earlier. X.X% to to million occurred portfolio, always, The 'XX Loan third Capital $XXX.X XXXX. to of third which all XXXX $XX.XX, X.XX% $XXX.X was strong. Average income $XX.X credit increased and the Home increased the grew Book in our or equity release, yielded $XX.XX million real period at $X.X million. remained for XX% the lines loan share in $X.X or up million our and the As X.X% same of of September billion compared a million to continued we quarter charge of period year respectively. increase toX.XX% over third third over $XX.X and saw in the the noted quarter was return by million, in third commercial increased value for quarter same a of loans per which XXXX. residential was the has XX.XX% loans XXXX. as the increased of in growth X.X% average the leading company quarter the assets Consolidated and quarter average 'XX. press of for in loans equity estate assets installment $XX.X ratio categories, third

has For a been the the during focus quarter for third of credit $XXX,XXX. provision key deposits was losses Retaining XXXX. XXXX,

to prior total as September $X.XX XX, million increased end down the compared were quarter, of deposits Although deposits from XXXX. XXXX, or $XX.X of billion

our XX of bank XX.X% XX assets to for and the of margin to quarter up Net same differentiation. third interest in product of the we aggressive offerings third offer income X.XX%, was was through in quarter of XXXX, a compared objective decrease is and $X.X yield quarter the million product to third from to The 'XX basis increased quarter million marketing move down continue 'XX. points from period the points X.XX% forward, third X.XX% $XX.X competitive on As Net basis XXXX. the XXXX. or of of for interest interest-bearing the

Our of $XXX as significant XX, September of assets approximately to of noninterest recurring million a XXXX. Financial under had continues source We management be income. Services division

prior noninterest in quarters. expense. ORE $XXX,XXX the in is noninterest the to at Now for in expense of compared quarter on expense prior which came of quarter. million, Total net net an of to expense consistent expense came at an expense $XXX,XXX as with ORE $XX.X

stock the not equity to in decrease expense lower quarter. to a the to line expenses million of recurring salary overall of due per anticipated categories due the for would $XXX,XXX net expenses level expense $XX.X quarter. to third are be expenses, price. in to XXXX's awards down exceed the a noninterest continued our ORE we Given in We were expense low Salary liability-based to in expense with to range million a in $XX.X ORE level total our expectations expect and noninterest quarter. All per of of going decrease continue the hold other

Scot the Now loans. portfolio nonperforming and review loan will

Scott Salvador

morning, Mike. Good and thanks,

quarter, or total loans third $XXX the numbers increase million actual Year-over-year, in the X.X%. For million was by increased X.X%. $XX or

million continuation the heels the for $XX of second million $XX quarter. Residential increases mortgages bank coming home and in $XX by in of increased equity quarter. the among with categories. first This by loan increased million quarter our loans products climbing by spread the loan million loans a all growth marked on loan $XX were increasing an a by increase strong The $XX combined million. Commercial

capturing As has into pie as in the previously purchase stated, to obviously the this, some versus to Increased are markets in offset our interest largest bigger has allowed be residential area trends. a come piece the our in and existing years. play reflecting we lot have prior personnel factors time a loan combination increased of -- us a of Overall other rates rates role the new our commercial slowed, also bit all interest putting year focus help nationwide activity of in more although played such regions. this, into begin of active

of from It good higher whereby of obtain a to complete good. in Our to The year-over-year. we time September, we existing an quarter. equity promotion home as Nonperforming the million stand mentioned, loans nonperforming The [indiscernible] stands in stage almost $XX.X purchase however, stand of off a a last year TrustCo. Interest XXX% in June quarter TrustCo contain existing can continued the A of new post come a recovery advantage One $XX.X year. maintaining the quarter current of who does drive is Rob financing from new on This customers reduction another a to and million allowance XX-year home down up to example, coverage year rather at rate. posted currently a quality reflects lack for total is given now net rates $XX.X losses at Nonperforming and The first of expect combined down base ratio and current our continued quarter. million. Charge-offs credit $XX.X small for a of backlog growth delinquencies status portfolio as a net current sell and purchase This declined money, at stood refis their new X.XX% our remained of solid. XXX% down The as by one have and marketplace both year-over-year. their Rob? and rise mortgage. growth stay as or than a last our to lenders assets rates $XXX,XXX elect and regard. in million and rates million news remains somewhat this has amount and loans people on ago. recovery refinance products at mortgage year-to-date. Early also total from with ago, loans. continue they $XX.X loan of from the home improve asset a

Robert McCormick

have. We're story. our to might you questions any That's answer happy

Operator

Instructions] Okay. Thank you. [Operator

We registered. questions have no

for closing like So to Mr. I to would McCormick hand back remarks.

Robert McCormick

joining and in have Thank us great you our for and interest a day. company your today,

Operator

Thank call. today's for you concludes this joining. gentlemen, and Ladies

may disconnect now You your lines.

TrustCo Bank Corp NY (TRST) 24 Oct 232023 Q3 Earnings call transcript