TRST - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the TrustCo Bank Corp Earnings Call Webcast. [Operator Instructions].

Before proceeding, we would like to mention that this presentation may contain forward-looking information about TrustCo Bank Corp New York, and this 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 or implied by such statements due to 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 Form 10-K as updated by our quarterly reports on Form 10-Q. reflect on hereof, are any call, and update information made of valid obligation except statements after the date developments required the the to law. as forward-looking may this of by only call as to the be The date or applicable this events company disclaims

measures the financial I'm on not financial determined During today's certain the trustcobank.com. discuss such that will to The financial measures of accordance is at Relations GAAP statements included to U.S. under comparable call, we derived GAAP. reconciliations tab from press the Investor website figures our our in most in available release, non-GAAP our are which earnings

be that also and today's will available audio press days event be note webcast call an replay earnings X in Please our will described for year available release. as for recorded. XX being A is of today's

call J. Please this I the would like to and CEO. over turn President Robert to conference go Chairman, At Mr. ahead. time, McCormick,

Robert McCormick

seeming leading I up on on return numbers. position. [indiscernible] the with morning, give of usual, an everyone, with the newly is the today, Curley; today is thank joined Kevin on call. President color the in Vice markets, and the Mike Officer. our we early I'm new bank. catch President give the construction joining will this to as our He Rob housing brings is for McCormick, for wealth demand. promoted his with detail over experience way experience Mike Also I'm Chief bank normalcy new a joining of of Ozimek, Kevin CFO. has lending, and are me Good to and Banking Kevin Executive to by you will and been XX and signs believe years seeing

Upstate and volume in the is [ volume we trends over some are days sidelines sellers is In purchase year off positive. year-over-year. tight York, listings the the and is coming new flat increasing, ] the market down in number essentially are active the trend declining still market will loosening we while trend are the up. Overall, median indicators again. in downstate last suggesting the the believe that New suggest of Inventory buyers seeing Northeast. of with HECO

detail, has As interest Kevin are net net positively margin, and and will and which X.X% X% improved loans average up this income respectively. contributed to

We to deposits improvement expected have we also seen priced signs loans what executed, respect contraction, some in yields competitively in strategy, and pricing, success have terms or margin deposits, and retained good our outcomes. time of with strategy showing both of favorable well

share Several favorable this and other Earnings per $X measures was this time were very up last value year. grew quarter. almost also book over

These and over TrustCo's thoughtful conservative quarter. We the both over also ROA our strong proven and ROE value successful return saw grew any metrics, and from in strategy long results, institutions the increased differentiated income haul. in improvements our sector. has

these we capital it quality measures. liquidity, well with themes credit mentioned quarter-after-quarter, TrustCo excellent warrant to consistently recurring something the is and strong regard of Although repeating. performs superior

generate. proud them about value the are We our to they report realize shareholders and

It or borrowing. also resorting bears all achieved were these emphasis without to appropriate that results deposits

bring. We balance books struggle a we some Mike of a beginning time debt turn look clear to skies at as our no have forward when the and profit. are the year We on banks that to believe to

you questions detail will the color Now give on will take numbers. portfolio, have give detail your the us if loan will then Mike? any. -- we us on Mike Kevin

Michael Ozimek

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

and quarter average assets of quarter for in of X.XX% value an yielded $XXX.X quarter, a respectively. income over return XX.XX% saw quarter quarter grew remains equity, loans a the X.X% second for 'XX press the net share the quarter to which year per to increase of in up second prior XX.XX% the million Consolidated compared of was X.XX% equity to high. at XXXX. earlier. XXXX the noted we ratio to company billion 'XX all-time at Book assets As Capital Average compared on second the the $XX.XX X.X% second from second $XX.X was million, and strong. X.X% of of 'XX June $XX.XX, or release, $X average XX,

real XX.X%. charge commercial 'XX loans 'XX. same the or Consequently, in million over $XX.X overall million installment the portfolio by or to has second in or quarter over which and period in in growth increase X.X% of residential the XX.X% lines usual, same estate as loan continued of increased million $XX.X as $XXX,XXX X.X% leading equity loans the increased $XX.X Average Home 'XX. period or credit increased decreased the

provision For the 'XX, second was quarter $XXX,XXX. credit of the for losses

be million compared continues a and at prior to in ended up focus were $XX.X deposits the to Retaining deposits $X.X billion the XXXX. year. Total quarter

million the in X on the the objective basis XXXX product forward, X.XX% to of million move continue assets offerings to basis is quarter Net of $X.X quarter we Net of $XX.X product income to X.XX%, offer of X.XX% marketing quarter quarter our second earning interest-bearing interest in X.XX% second the income or X.X% of compared quarter from XXXX, 'XX. X to net of second aggressive quarter. of points through was first first up for increase bank was the competitive differentiation. of XXXX liabilities Yield As -- 'XX. margin from in Cost first to points the the and increased for XXXX. prior an the of quarter X.XX%, up from increased

income. be management continues approximately under recurring XXXX. They had of a billion to assets Our division $X.X source of Wealth XX, of significant June Management as noninterest

stock. as common C release, conversion C company $X.X common based value Additionally, million a Visa recorded mentioned and gain privilege press Class Visa to on in the marked stock the the fair its of of the Class

Total prior quarter. noninterest the from $X.X net came million, expense. to on expense up noninterest at ORE million of $XX.X expense Now in

increase for compared as of result primarily employee to in in the expense the $XX,XXX higher in current the quarter ORE benefit costs the quarter. The prior at quarter. net came is $XX,XXX

continued Given of to not second noninterest the to hold level $XXX,XXX of were expenses continue line anticipated with quarter. quarter. to other going exceed of categories in level low expectations the expense All ORE we're per expenses, the for our the

review Kevin will the nonperforming Now loan loans. and portfolio

Kevin Curley

morning Thanks, to good Mike, and everyone.

on Our million average $XXX centered last $XX.X loans million year-over-year. growth by grew mortgages, increased X.X% which or by year. over The residential

loans Our increased last or by XX.X%, million loans million year. XX.X% our or commercial $XX over home and $XX.X grew by equity also

million loans home equity and quarter post first $XX increased loans The mortgages by the with increased actual both million. second $XX products increases. Residential by

have activity In remain by Portfolio to in us we the with well in commercial market the at control a loan. XX-year Rates fixed the utilize market our weeks, we $X.X various be increased addition, and on our position. loans have seek to allows in as currently stand million. rate market to and capitalize great product, in combined decreased develops. flexibility promotions We recent pricing and X.XXX% for positioned the Phase

increasing efforts are very the the and More of We market piece competitive have been we with has quarter and the we our on Overall, steady recent side on keeping focus growth continue activity progress, with in volumes. our the current market. goal to year-over-year. a seen pleased purchase capturing our rates larger of loan

asset to moving quality. Now

$XX.X strong. million bank as a $XX.X stand loans to X.XX% year the remains million Asset Nonperforming last totaled loans million a versus versus of versus million Nonperforming at ago. June Nonperforming year. XX quality loans of total assets X.XX% $XX.X decreased now ago. to year $XX.X

a Our recovery million early-stage of with to and a quarter net also to XXX.X% charge-offs $XX.X end, of steady amounted XXXX. was $XX,XXX. ratio At delinquencies and of the coverage for to losses allowance $XX.X the million XXX.X% in continue Rob? quarter credit coverage ratio compared be a for

Robert McCormick

have... happy That's any our questions might you story, and answer we're to

Operator

Lapey of comes [Operator Funds. Instructions] Gabelli first Our question from Ian

John Lapey

good quarter. row. of Rob and congrats on great -- after all, expanding guess, the in obviously the quarters several on team, a to first see dropping NIM I a

cost a curious, you deposits. benefited from of Just lower

down still sort quarter cost rate do think this of Assuming decreases can on seeing? based what trends no quarter, Fed you that of this you're drive deposits you repricing

Robert McCormick

we're our funding Ian do the to going we borrowing what acceptable need have without positive level goal very maintaining very, balance cash and requirements That's it. keep an our brokered watching closely, loans markets and and at the the we we're liquidity as into to between that and

be would the number that to goal that to try So to drag continue down.

John Lapey

Okay... yes...

Robert McCormick

know. Because you knew Ian... I that, don't

John Lapey

know. going on The fees And year-over-year, services Yes, sequentially there? I customers fairly unusual down double was significantly and anything for digit. to

Robert McCormick

think, only would NSF be I outlier Ian. fees, The

the recall and in the how we NSF fees. caught that NSF we we NSF collect fees have You were track fees calculate is that this way with we

other months. of up But than management wealth believe I a fees great other of fees are a -- NSF of not, it prior a we've on really over has that's But year little areas it's higher kind couple still and -- on months, the would only been the our for tariff bit on had have impact the Some growth making fees, some directly say period. this that. or been though,

John Lapey

great the in And growth Okay. then portfolio. HELOC

first if is what include, percent the then what lien going curious, that's of Just loan to to obviously, the ahead roughly you you? is value And existing customers?

Robert McCormick

new TrustCo mortgage a between looking loan XX-XX about If to it's Kevin... I can TrustCo, think value. you I'm your with you existing up first to have a And get XX% split at and customers. customers

Kevin Curley

That's sound's -- above so... that

Robert McCormick

the about time We've Ian. equity for split, long to been that's known lender. very a I be think home strong a

have early You years strong years reputation. years and adopter always and and ago that were an maintained

bigger offering kind home greater us. people the [indiscernible] So market. do we we from the draw to draw do some And lending, not the do equity banks get year. noncustomers from with of And drives credit of we -- it

John Lapey

is payoffs you existing you some then increase residential seeing mortgage refis show housing any life. mentioned or Are question. starting book... the Great. last Okay. in market And to signs of of Rob, your

Robert McCormick

We're stable [indiscernible] Ian. but say to would and a I down stable trending not bit little it's percentages, No, huge very experiencing down. still

John Lapey

Okay. again. Great. Congratulations

Robert McCormick

you. Thank

Operator

questions. further to no have speaker will our remarks. I closing for And McCormick currently We hand Rob therefore, back

Robert McCormick

great to the this Have us morning. Heidenberg, shout joining on special Troy for A way, Thanks call. the by out a day.

Operator

to today's you everyone for Thank joining. call. This concludes

now may your lines. You disconnect

TrustCo Bank Corp NY (TRST) 23 Jul 242024 Q2 Earnings call transcript