TRST - Earnings call transcript Q3 2024

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Operator

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

Before proceeding, we would like to mention that this presentation may include forward-looking information about TrustCo Bancorp New York, that is intended to be covered by our safe harbor for looking forward 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 statements due to various risks, uncertainties and other factors.

More detailed information about these other risks and factors can be found in our press release that preceded this call and in our Risk Factors and forward-looking statements section of our annual report on Form 10-K as updated on our quarterly reports on Form 10-Q. events in and valid obligation except the this to made the as to as statements the information hereof after by date company reflect may forward-looking be this this law. only are of update date applicable The of developments call, or disclaims any

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

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

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

Robert McCormick

you, everyone, Thank the and for joining and thank call. you morning, good

way Curley, lending. on our like of host for its Rob family, detail joined Ozimek, the will Hurricane McCormick, I'm of Bank. geographic of concern as entire by many TrustCo footprint Florida. and I usual and On across behalf to as TrustCo color to Bank Milton expressions today CFO, I'm the numbers the Kevin the who give in would will our said, in the give President express As who thanks well Mike wishes

worse report shape, in for to wear. people storm good are through a that came our happy little the the although We

the the in day battering all withstood locations many with our a of now. opening storm or open so Likewise, within facilities

a are runs a and day, run, that scored like the we home quarter hit even but and grand no baseball this win. posted singles team slam the at of of or results end Our doubles. There's reliably those a

done deposits on we by new deposit originating on year. to capitalizing the quarter last we grew over favorably deposits, cost rates and controlling strong and CDs, from interest third demand consisted direct year. expenses the relationships of This was of loans that executed grew enable of at holding deposits. the customer in plays the our us line priced better Solid some mostly core outflow that part that our We

volume an With that to to adding booked conditions increase said, over over continue growth quarter. These equity our a was portfolio factors interest of rates. XX% year. to increase to customers home we're all higher realized the to happy the at margin combined slightly in report The the over that net quarter increase and over drive to we quarter. X% new the margin our products, Market

reach all-time the and in also into proud that are high right highlights We funds lend so in a our portfolio. same saw we another loans also $X.X and We loan is deposit itself those win gather of and back which operation those between of our communities. areas our billion, total and nearly deposits symmetry portfolio

income. operations. respectful $XX.X the our This very effective of loans as time. a important and of to it the loans of the been was a a at ours underwriting The stellar posted of has period diligent loan and our is minds standards on quality lot over analysts, to we Credit and steady over speaks remains X.XX% Nonperforming efforts quarter. when of processing long million held high net investors total most

we loan if have the dive provide your Now numbers. any. and Mike? on update you questions then take Mike can portfolio, will an Kevin will into the

Michael Ozimek

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

average remains strong. quarter net the prior Capital and XX.XX% X.XX% average release, on XXXX. X.X% assets million, toXX.XX% of quarter equity the the which a to third over saw press compared quarter income company $XX.X quarter yielded the the of return in Consolidated of of an assets noted we As XXXX in ratio for third of was equity respective. third and X.XX% increase

Book quarter X.X% leading to third earlier. charge $XXX increase for X.X% commercial installment has of usual, lines of X.X% year quarter period loans a 'XX. estate at the residential or the $X.X by billion increased up high. same same the a period and was in XXXX from increased an the quarter or which as million or $XX.X portfolio of of million 'XX. compared credit continued per decreased increased $XX loan XX, third or to in loans Average loans $XX.XX, X.X%, XXXX, XX.X%. Home $XX.XX 'XX real or was Average share over X.X% value the grew equity all-time the September $X XXXX, $XX.X growth to over million third Overall, in million and million

quarter 'XX $XXX,XXX. the was losses marketing of deposits bank to For the quarter interest the a objective third deposits for the Net at key our move we and billion, product 'XX, product quarter offer quarters Total $X.X of differentiation. basis $XXX,XXX Retaining credit as net from ended aggressive focus forward, through consecutive continue increase and is interest income competitive X.X% to the was X.XX%, been 'XX, of to X second throughout 'XX, XXXX. provision offerings $XX.X an has million or of compared increase up of The quarter. in for third X in quarter of interest margin. an the resulting the the for was third margin points of quarter net prior

the of the offered quarter the X.XX% increased up to bring quarter-over-quarter, retain time 'XX. XXXX, to have rates significant X.XX% X.XX%, product third from a decreased interest-earning in portion liabilities cost to will lower been on The second Yield able deposits from X the the 'XX. quarter continue the of on while X.XX% of interest-bearing of cost quarter second Throughout deposits. to which points 'XX time we basis continuing of assets in of to in down

optimistic we erosion going seen forward. and to has begin turn are quarter, Bank around of margins last

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

advertising on the FDIC services expense during of decrease noninterest prior for from $XXX,XXX expense expense outsourced net million, quarter compared Now and lower expense, the other service by partially in in as expense The and costs professional down $XX,XXX result and of an expense. noninterest in to $XXX,XXX salaries quarter. and came benefits, and insurance came increase ORE expense quarter. at offset prior in equipment ORE $XX the the Total of occupancy, that the quarter. at net in the to is

low of per to level with of expense continued noninterest expenses the anticipated categories continue expectations level are to the going of million noninterest All million the hold Given expect other expense, in our to of of 'XX's expenses, to in quarter. quarter. ORE the were ORE line exceed $XXX,XXX We'd quarter. we the for third the $XX.X for range total be net to $XX.X recurring not expense,

the and nonperforming loans. loan review will Kevin portfolio Now

Kevin Curley

morning over mortgages, good or by year-over-year. our everyone. which grew and $XX year, last home Mike increased or million by Thanks, to equity by X.X% centered on million million XX.X%. $XXX $XX loans loans increased Average and residential The growth also

year-over-year. $XX grew In addition, our loans million by commercial

installment the Residential the and market were market credit increased capitalize the with For actual first both and We loans for home loans seek remain lines as $XX slightly to Commercial by equity loans million quarter, by activity and loans $XX lower positioned million. increased in develops. quarter. increases. mortgages posting third well

with great our to ability the on offer put products, a us of flexibility portfolio Our utilize pricing combined control various to our promotions and in position.

recent rate We competitive in XX-year the for and weeks, fixed keeping with increasing rate market in current have volume. loan. increased have our Rates is X.XX% base rates been very of the goal our our

addition, very In competitive adjustable we below rate mortgages X%. with have rates

the home but that may their have continue remain attractive home's quarter also they and remained rate for projects loan growth the focused we pleased in mortgages, are large to Our as equity demand purchases. want see to stronger products many low on equity various to borrowers Overall, results. or may driving steady use with

to moving quality. Now asset

last and and quality strong. X.XX% $XX.X million under last quarter compared at Nonperforming X.XX% year million remains loans last assets XX million to end, X.XX% million and a million totaled ago. ago. Nonperforming total loans million of Asset now were versus a the at $XX.X $XX.X quarter $XX.X as September $XX.X of year Nonperforming ago. quarter quarter at just stand loans year a $XX bank

Our and of a the delinquencies steady quarter for $XXX,XXX. only XXXX. for of of our quarter total also ratio to September coverage of year-to-date million million a continue ratio loan and $XX charge-offs $XX.X to At a allowance be XXX% a and solid amounted early-stage XXX% compared coverage Rob? was to end, in $XXX,XXX losses with

Robert McCormick

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

Operator

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

John Lapey

are result have... properties on first a to to of and and might damage issues maybe questions. Good team, your on people homes quarter. credit Any guess, Rob Yes, hear that few congrats you that the hurricanes. the thoughts about the good I some from okay.

Robert McCormick

the a storms, complete have through -- -- quite had We've another in few do these this their a We do to have bank on reserve we that the establish around, and mortgages that their work seeing but people types this point, before. establish as and accounts who own. never losses way lot home. funds even we're restore for of those not that they But had been those issues -- Ian. disperse we've one time Ian, at or unfortunately of We the at of

going a big not So it to seems it's overall. like impact be

John Lapey

Okay. Good.

just you what review CDs the for compared now? CDs pricing can sort maturing that the of On to showing you're CDs, is new

Robert McCormick

the it or now, our Ian. months, Most customers like of believe right X not,

rate. at So most are customers X-month into the of going a maturity

a offering months. and the are about now We XX-XX the between pretty but right a taking breakthrough, it's split XX-month attractive people XX X-month

John Lapey

and you And when how have new saving are you showing versus one? maturing a one much

Robert McCormick

rate the is for months and X% X.X% range. is for range months rate X the The XX in the in

John Lapey

on $X.X revenues there Financial AUM. higher in Services, and increase by the really AUM? was Services, that Or from you unusual then in And quarter? Financial Was the mentioned strong billion driven anything quarter, the was Okay. in

Robert McCormick

are management regard to year-over-year, our we are under up Assets proactive and fees. with

a tell unit the Services have I Financial -- Services a or for Pat So in Trust. assembled assembled very Kevin strong or us, the and X and Pat you, area. he to Ian, Trust And in department runs been combination of the has effect in Financial that positive the LaPorta have team got very

because trend I I doing they're do a seminars they're lot it of now. hope on and very of continues. really a right lot customer good So a contact, and

John Lapey

Okay. Great. And last question. then

capital is, the I obviously, of any I position strongest think, bank follow. the So

to or sort of just or book, you below how something Is share you talk have tangible prioritize repurchases with sort starting want your with are thinking add you're of -- year-over-year. those terms of maybe capital? you that you you inflection about NIM branches I increase do to branches reached thinking the growth? an about point see maybe options? stock your dividend now can improve, what down How are As in about

Robert McCormick

As brighter we of light things. at those of to it look gets and going over see time, all that certainly end the the tunnel at we're

of We advocate share are new program, and couple are branch fan that for an generally a a at and we're expansion. looking a areas of possible buyback there

the we biggest be X priorities would probably those that have. So would

Just trying through period time. to drive of this ] broader [ a keep

Operator

We currently have no further questions.

I'd like hand J. back any remarks. McCormick Robert So closing to for to

Robert McCormick

you Thank hope a I you for your you. day. interest great Thank in company. our have

Operator

today's we As to joining. Thank everyone conclude you call. for

now may disconnect your You lines.

TrustCo Bank Corp NY (TRST) 22 Oct 242024 Q3 Earnings call transcript