|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(
|
Title of each class
|
Trading Symbol (s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company
|
Common Stock
|
Number of Shares Outstanding
as of October 31, 2022 |
$1.00 Par Value
|
|
Part I.
|
FINANCIAL INFORMATION
|
PAGE NO.
|
Item 1.
|
Consolidated Interim Financial Statements (Unaudited):
|
|
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8-46
|
||
47
|
||
Item 2.
|
48-69
|
|
Item 3.
|
70
|
|
Item 4.
|
70
|
|
Item 1.
|
71
|
|
Item 1A.
|
71
|
|
Item 2.
|
71
|
|
Item 3. | Defaults Upon Senior Securities | 71 |
Item 4.
|
71
|
|
Item 5.
|
72
|
|
Item 6.
|
72
|
Three months ended | Nine months ended | |||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Interest and fees on loans
|
$
|
|
|
|
|
|||||||||||
Interest and dividends on securities available for sale:
|
||||||||||||||||
U. S. government sponsored enterprises
|
|
|
|
|
||||||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
||||||||||||
Small Business Administration-guaranteed participation securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Total interest and dividends on securities available for sale
|
|
|
|
|
||||||||||||
Interest on held to maturity securities:
|
||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations-residential
|
|
|
|
|
||||||||||||
Total interest on held to maturity securities
|
|
|
|
|
||||||||||||
Federal Home Loan Bank stock
|
|
|
|
|
||||||||||||
Interest on federal funds sold and other short-term investments
|
|
|
|
|
||||||||||||
Total interest income
|
|
|
|
|
||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits:
|
||||||||||||||||
Interest-bearing checking
|
|
|
|
|
||||||||||||
Savings accounts
|
|
|
|
|
||||||||||||
Money market deposit accounts
|
|
|
|
|
||||||||||||
Time deposits
|
|
|
|
|
||||||||||||
Interest on short-term borrowings
|
|
|
|
|
||||||||||||
Total interest expense
|
|
|
|
|
||||||||||||
Net interest income
|
|
|
|
|
||||||||||||
Provision (Credt) for credit losses
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Net interest income after (credit) provision for credit losses
|
|
|
|
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Trustco financial services income
|
|
|
|
|
||||||||||||
Fees for services to customers
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest income
|
|
|
|
|
||||||||||||
Noninterest expenses:
|
||||||||||||||||
Salaries and employee benefits
|
|
|
|
|
||||||||||||
Net occupancy expense
|
|
|
|
|
||||||||||||
Equipment expense
|
|
|
|
|
||||||||||||
Professional services
|
|
|
|
|
||||||||||||
Outsourced services
|
|
|
|
|
||||||||||||
Advertising expense
|
|
|
|
|
||||||||||||
FDIC and other insurance
|
|
|
|
|
||||||||||||
Other real estate expense, net
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest expenses
|
|
|
|
|
||||||||||||
Income before taxes
|
|
|
|
|
||||||||||||
Income taxes
|
|
|
|
|
||||||||||||
Net income
|
$
|
|
|
|
|
|||||||||||
Net income per share:
|
||||||||||||||||
- Basic
|
$
|
|
|
|
|
|||||||||||
- Diluted
|
$
|
|
|
|
|
Three months ended | Nine months ended | |||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income
|
$
|
|
|
|
|
|||||||||||
Net unrealized holding loss on securities available for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Tax effect
|
|
|
|
|
||||||||||||
Net unrealized loss on securities available for sale, net of tax
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of net actuarial gain
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of prior service (credit) cost |
(
|
)
|
|
(
|
)
|
|
||||||||||
Tax effect
|
|
(
|
)
|
|
|
|||||||||||
Amortization of net actuarial gain and prior service (credit) cost on pension and postretirement plans, net
of tax
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Comprehensive income
|
$
|
|
|
|
|
September 30, 2022
|
December 31, 2021
|
|||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$
|
|
|
|||||
Federal funds sold and other short term investments
|
|
|
||||||
Total cash and cash equivalents
|
|
|
||||||
Securities available for sale
|
|
|
||||||
Held to maturity securities ($
|
|
|
||||||
Federal Home Loan Bank stock |
|
|
||||||
Loans, net of deferred net costs
|
|
|
||||||
Less:
|
||||||||
Allowance for credit losses on loans
|
|
|
||||||
Net loans
|
|
|
||||||
Bank premises and equipment, net
|
|
|
||||||
Operating lease right-of-use assets
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
|
|||||
LIABILITIES:
|
||||||||
Deposits:
|
||||||||
Demand
|
$
|
|
|
|||||
Interest-bearing checking
|
|
|
||||||
Savings accounts
|
|
|
||||||
Money market deposit accounts
|
|
|
||||||
Time deposits
|
|
|
||||||
Total deposits
|
|
|
||||||
Short-term borrowings
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
SHAREHOLDERS’ EQUITY:
|
||||||||
Capital stock par value $
|
|
|
||||||
Surplus
|
|
|
||||||
Undivided profits
|
|
|
||||||
Accumulated other comprehensive (loss) income, net of tax
|
(
|
)
|
|
|||||
Treasury stock at cost -
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
|
Accumulated | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Capital | Undivided | Comprehensive | Treasury | |||||||||||||||||||||
Stock (1)
|
Surplus (1)
|
Profits
|
Income
|
Stock
|
Total
|
|||||||||||||||||||
Beginning balance, January 1, 2021 (1)
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Stock options exercised (
|
||||||||||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock (
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Ending balance, March 31, 2021 (1)
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
||||||||||||||||||
Cash used to settle fractional shares in the Reverse Stock Split | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Stock options exercised ( |
||||||||||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock ( |
( |
) | ( |
) | ||||||||||||||||||||
Ending balance, June 30, 2021
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Stock options exercised ( |
||||||||||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock ( |
( |
) | ( |
) | ||||||||||||||||||||
Ending balance, September 30, 2021
(1)
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Beginning balance, January 1, 2022
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Cumulative impact of adoption of ASU 2016-13
|
- |
- |
( |
) | - |
- |
( |
) | ||||||||||||||||
Balance, January 1, 2022 as adjusted For impact of adoption of ASU 2016-13
|
( |
) | ||||||||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Ending balance, March 31, 2022
|
$
|
|
|
|
(
|
)
|
(
|
)
|
|
|||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Ending balance, June 30, 2022
|
$
|
|
|
|
(
|
)
|
(
|
)
|
|
|||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Cash dividend declared, $ |
( |
) | ( |
) | ||||||||||||||||||||
Purchase of treasury stock |
( |
) | ( |
) | ||||||||||||||||||||
Ending balance, September 30, 2022
|
$
|
|
|
|
(
|
)
|
(
|
)
|
|
(1)
|
|
(2)
|
|
Nine months ended September 30,
|
||||||||
2022
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
|
|||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
|
|
||||||
Amortization of right-of-use asset
|
|
|
||||||
Net gain on sale of other real estate owned
|
(
|
)
|
(
|
)
|
||||
Writedown of other real estate owned
|
|
|
||||||
(Credit) provision for credit losses
|
(
|
)
|
(
|
)
|
||||
Deferred tax expense (benefit)
|
|
(
|
)
|
|||||
Net amortization of securities
|
|
|
||||||
Net gain on sale of bank premises and equipment
|
( |
) | ||||||
Decrease (increase) in taxes receivable
|
|
(
|
)
|
|||||
(Increase) decrease in interest receivable
|
(
|
)
|
|
|||||
Decrease in interest payable
|
(
|
)
|
(
|
)
|
||||
Increase in other assets
|
(
|
)
|
(
|
)
|
||||
Decrease in operating lease liabilities
|
(
|
)
|
(
|
)
|
||||
Decrease in accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
Total adjustments
|
|
(
|
)
|
|||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sales, paydowns and calls of securities available for sale
|
|
|
||||||
Proceeds from paydowns of held to maturity securities
|
|
|
||||||
Purchases of securities available for sale
|
(
|
)
|
(
|
)
|
||||
Proceeds from maturities of securities available for sale
|
|
|
||||||
Purchases of Federal Home Loan Bank stock
|
( |
) | ( |
) | ||||
Net increase in loans
|
(
|
)
|
(
|
)
|
||||
Proceeds from dispositions of other real estate owned
|
|
|
||||||
Proceeds from dispositions of bank premises and equipment
|
|
|
||||||
Purchases of bank premises and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
|
|
||||||
Net change in short-term borrowings
|
(
|
)
|
|
|||||
Proceeds from exercise of stock options
|
|
|
||||||
Cash used to settle fractional shares in the Reverse Stock Split
|
( |
) | ||||||
Purchases of treasury stock
|
(
|
)
|
(
|
)
|
||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash (used in) provided by financing activities
|
(
|
)
|
|
|||||
Net increase in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
|
|||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest paid
|
$
|
|
|
|||||
Income taxes paid
|
|
|
||||||
Other non cash items:
|
||||||||
Transfer of loans to other real estate owned
|
||||||||
Decrease in dividends payable
|
( |
) | ( |
) | ||||
Change in unrealized (loss) gain on securities available for sale-gross of deferred taxes
|
(
|
)
|
(
|
)
|
||||
Change in deferred tax effect on unrealized loss (gain) on securities available for sale
|
|
|
||||||
Amortization of net actuarial gain and prior service cost (credit) on pension and postretirement plans
|
(
|
)
|
(
|
)
|
||||
Change in deferred tax effect of amortization of net actuarial gain postretirement benefit plans
|
|
|
||||||
Impact to retained earnings from adoption of ASC 326, net of tax
|
( |
) |
(in thousands) |
December 31,
2021 Pre-CECL
Adoption
|
Impact of Adoption
|
January 1, 2022
Post-CECL
Adoption
|
|||||||||
Assets:
|
||||||||||||
Allowance for credit losses on loans
|
$
|
|
$ |
|
$
|
|
||||||
Allowance for credit losses on securities
|
|
|
|
|||||||||
Liabilities and shareholders’ equity:
|
||||||||||||
Other liabilities (ACL unfunded loan commitments)
|
|
|
|
|||||||||
Tax Effect, net
|
|
(
|
)
|
|
||||||||
Total
|
||||||||||||
Undivided Profits
|
$ |
|
$ |
(
|
)
|
$ |
|
•
|
Unemployment levels in relation to inflationary pressures;
|
•
|
Monetary and fiscal policy assumptions and movement of the federal funds rate in 2022;
|
•
|
Supply chain conditions and their impacts on Consumer Price indices (“CPI”), and
|
•
|
Inflationary pressures on housing, and Gross Metro Product (“GMP”).
|
(in thousands, except per share data) | For the three months ended | For the nine months ended | ||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income
|
$
|
|
|
$
|
|
|
||||||||||
Weighted average common shares
|
|
|
|
|
||||||||||||
Stock Options
|
|
|
|
|
||||||||||||
Weighted average common shares including potential dilutive shares
|
|
|
|
|
||||||||||||
Basic EPS
|
$
|
|
|
$
|
|
|
||||||||||
Diluted EPS
|
$
|
|
|
$
|
|
|
Three months ended September 30,
|
||||||||||||||||
Pension Benefits
|
Other Postretirement Benefits
|
|||||||||||||||
(dollars in thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Service cost
|
$
|
|
|
|
|
|||||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of net gain
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Amortization of prior service (credit) cost
|
|
|
(
|
)
|
|
|||||||||||
Net periodic benefit
|
$
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Nine months
ended September 30,
|
||||||||||||||||
Pension Benefits
|
Other Postretirement Benefits
|
|||||||||||||||
(dollars in thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Service cost
|
$
|
|
|
|
|
|||||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of net gain
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Amortization of prior service cost (credit)
|
|
|
(
|
)
|
|
|||||||||||
Net periodic benefit
|
$
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
September 30,
2022
|
||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. government sponsored enterprises
|
$
|
|
|
|
|
|||||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
||||||||||||
Small Business Administration - guaranteed participation securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Securities Available for Sale
|
$
|
|
|
|
|
December 31, 2021
|
||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. government sponsored enterprises
|
$
|
|
|
|
|
|||||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
||||||||||||
Small Business Administration - guaranteed participation securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Securities Available for Sale
|
$
|
|
|
|
|
Amortized | Fair | |||||||
(dollars in thousands)
|
Cost
|
Value
|
||||||
Due in one year or less
|
$
|
|
|
|||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
||||||
Small Business Administration - guaranteed participation securities
|
|
|
||||||
$
|
|
|
September 30,
2022
|
||||||||||||||||||||||||
Less than | 12 months | |||||||||||||||||||||||
12 months
|
or more
|
Total
|
||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unreal. | |||||||||||||||||||
(dollars in thousands)
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
U.S. government sponsored enterprises
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
|
|
||||||||||||||||||
Corporate bonds
|
|
|
|
|
|
|
||||||||||||||||||
Small Business Administration - guaranteed participation securities | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
December 31, 2021
|
||||||||||||||||||||||||
Less than | 12 months | |||||||||||||||||||||||
12 months
|
or more
|
Total
|
||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unreal. | |||||||||||||||||||
(dollars in thousands)
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
U.S. government sponsored enterprises
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
|
|
||||||||||||||||||
Corporate bonds
|
|
|
|
|
|
|
||||||||||||||||||
Other | ||||||||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
Three months ended September 30,
|
||||||||
(dollars in thousands)
|
2022
|
2021
|
||||||
Proceeds from sales
|
$
|
|
|
|
||||
Proceeds from calls/paydowns
|
|
|
||||||
Proceeds from maturities
|
|
|
||||||
Gross realized gains
|
|
|
||||||
Gross realized losses
|
|
|
Nine months ended September 30,
|
||||||||
(dollars in thousands)
|
2022
|
2021
|
||||||
Proceeds from sales
|
$
|
|
|
|
||||
Proceeds from calls/paydowns
|
|
|
||||||
Proceeds from maturities
|
|
|
||||||
Gross realized gains
|
|
|
||||||
Gross realized losses
|
|
|
September 30,
2022
|
||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrecognized | Unrecognized | Fair | |||||||||||||
(dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
|
|
|
|
|||||||||||
Total held to maturity
|
$
|
|
|
|
|
December 31, 2021
|
||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrecognized | Unrecognized | Fair | |||||||||||||
(dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
|
|
|
|
|||||||||||
Total held to maturity
|
$
|
|
|
|
|
(dollars in thousands) | Amortized | Fair | ||||||
Cost
|
Value
|
|||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
|
|
|||||
$
|
|
|
|
September 30, 2022
|
|||||||||||
(dollars in thousands) |
New York and
|
|||||||||||
|
other states*
|
Florida
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total loans, net
|
$
|
|
|
|
||||||||
Less: Allowance for credit losses
|
|
|||||||||||
Net loans
|
$
|
|
|
December 31, 2021
|
|||||||||||
(dollars in thousands) |
New York and
|
|||||||||||
|
other states*
|
Florida
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total loans, net
|
$
|
|
|
|
||||||||
Less: Allowance for loan losses
|
|
|||||||||||
Net loans
|
$
|
|
December 31, 2021
|
January 1, 2022
|
|||||||||||
(dollars in thousands)
|
Pre-Adoption
Balance
|
Impact of Adoption
|
Post CECL
Adoption
|
|||||||||
Total
|
Total
|
|||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
(
|
)
|
|
|
|||||
Other
|
|
|
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
(
|
)
|
|
||||||||
Total Allowance
|
$
|
|
|
|
|
For the three months ended September 30, 2022
|
||||||||||||||||
(dollars in thousands) |
Real Estate
|
|||||||||||||||
Mortgage-
|
||||||||||||||||
|
Commercial
|
1 to 4 Family
|
Installment
|
Total
|
||||||||||||
Balance at beginning of period | $ | |||||||||||||||
Loans charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total loan chargeoffs
|
|
|
|
|
||||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total recoveries
|
|
|
|
|
||||||||||||
Net loans (recoveries) charged off
|
|
(
|
)
|
|
(
|
)
|
||||||||||
(Credit)
provision for credit losses
|
|
(
|
)
|
|
|
|||||||||||
Balance at end of period
|
$
|
|
|
|
|
For the three months ended September 30,
2021
|
||||||||||||||||
(dollars in thousands) |
Real Estate
|
|||||||||||||||
Mortgage-
|
||||||||||||||||
|
Commercial
|
1 to 4 Family
|
Installment
|
Total
|
||||||||||||
Balance at beginning of period
|
$
|
|
|
|
|
|||||||||||
Loans charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total loan chargeoffs
|
|
|
|
|
||||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total recoveries
|
|
|
|
|
||||||||||||
Net loan recoveries
|
|
(
|
)
|
|
|
|||||||||||
(Credit) provision for loan losses
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balance at end of period
|
$
|
|
|
|
|
For the nine
months ended September 30, 2022
|
||||||||||||||||
(dollars in thousands)
|
Real Estate
|
|||||||||||||||
Mortgage-
|
||||||||||||||||
Commercial
|
1 to 4 Family
|
Installment
|
Total
|
|||||||||||||
Balance at beginning of period
|
$
|
|
|
|
|
|
|
|
||||||||
Impact of ASU 2016-13, Current Expected Credit Loss (CECL) |
( |
) | ( |
) | ||||||||||||
Balance as of January 1, 2022 as adjusted for ASU 2016-13
|
||||||||||||||||
Loans charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total loan chargeoffs
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total recoveries
|
|
|
|
|
||||||||||||
Net loans charged off
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Credit for loan losses
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Balance at end of period
|
$
|
|
|
|
|
For the nine months ended September 30, 2021
|
||||||||||||||||
(dollars in thousands)
|
Real Estate
|
|||||||||||||||
Mortgage-
|
||||||||||||||||
Commercial
|
1 to 4 Family
|
Installment
|
Total
|
|||||||||||||
Balance at beginning of period
|
$
|
|
|
|
|
|||||||||||
Loans charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total loan chargeoffs
|
|
|
|
|
||||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||
New York and other states*
|
|
|
|
|
||||||||||||
Florida
|
|
|
|
|
||||||||||||
Total recoveries
|
|
|
|
|
||||||||||||
Net loan recoveries
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
(Credit) provision for loan losses
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance at end of period
|
$
|
|
|
|
|
September 30,
2022
|
||||||||||||||||
(dollars in thousands) |
1-to-4 Family
|
|||||||||||||||
Commercial
|
Residential | Installment | ||||||||||||||
|
Loans
|
Real Estate
|
Loans
|
Total
|
||||||||||||
Allowance for loan losses:
|
||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
|
|
|
|||||||||||
Collectively evaluated for impairment
|
|
|
|
|
||||||||||||
Total ending allowance balance
|
$
|
|
|
|
|
|||||||||||
Loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
|
|
|
|||||||||||
Collectively evaluated for impairment
|
|
|
|
|
||||||||||||
Total ending loans balance
|
$
|
|
|
|
|
December 31, 2021
|
||||||||||||||||
(dollars in thousands) |
1-to-4 Family
|
|||||||||||||||
Commercial | Residential | Installment | ||||||||||||||
|
Loans
|
Real Estate
|
Loans
|
Total
|
||||||||||||
Allowance for loan losses:
|
||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
|
|
|
|||||||||||
Collectively evaluated for impairment
|
|
|
|
|
||||||||||||
Total ending allowance balance
|
|
|
|
|
|
|||||||||||
Loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
|
|
|
|||||||||||
Collectively evaluated for impairment
|
|
|
|
|
||||||||||||
Total ending loans balance
|
$
|
|
|
|
|
(In thousands)
|
For the three
months ended
September 30, 2022
|
|||
Balance at June 30, 2022
|
$
|
|
||
Provision for credit losses
|
|
|||
Balance at September 30, 2022
|
$
|
|
(In thousands)
|
For the nine
months ended
September 30, 2022
|
|||
Balance at January 1, 2022
|
$
|
|
||
Impact of Adopting CECL
|
|
|||
Adjusted Balance at January 1, 2022
|
|
|||
Provision for credit losses
|
|
|||
Balance at September 30, 2022
|
$
|
|
(in
thousands)
|
September 30, 2022 | |||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination
Year
|
||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving Loans
Amortized Cost
Basis
|
Revolving
Loan
Converted to Term
|
Total
|
||||||||||||||||||||||||||||
Commercial :
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Special
Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
Commercial Loans
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Commercial
Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period
Gross writeoffs
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|||||||||||||||||||
Commercial
Other:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Special
mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
Commercial Real Estate Loans
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Other
Commercial Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period
Gross writeoffs
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|||||||||||||||||||
Residential
First Mortgage:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total First
Mortgage:
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Residential
First Mortgage Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period
Gross writeoffs
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||||||||||||||
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|||||||||||||||||||
Home Equity
Lines:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Home
Equity Lines:
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Home Equity
Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period
Gross writeoffs
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||||||||||||||
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|||||||||||||||||||
Home Equity
Lines of Credit:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Home
Equity Credit Lines:
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Home Equity
Lines of Credit:
|
||||||||||||||||||||||||||||||||||||
Current-period
Gross writeoffs
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|||||||||||||||||||
Installments:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
Installments
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
||||||||||||||||||
Installments
Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period
Gross writeoffs
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
September 30,
2022
|
||||||||||||||||||||||||
New York and other states*:
|
||||||||||||||||||||||||
30-59
|
60-89
|
90 +
|
Total | |||||||||||||||||||||
Days | Days | Days |
30+ days
|
Total | ||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Current
|
Loans
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
Florida:
|
||||||||||||||||||||||||
30-59
|
60-89
|
90 +
|
Total | |||||||||||||||||||||
Days | Days | Days |
30+ days
|
Total | ||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Current
|
Loans
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
Total:
|
||||||||||||||||||||||||
30-59
|
60-89
|
90 +
|
Total | |||||||||||||||||||||
Days | Days | Days |
30+ days
|
Total | ||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Current
|
Loans
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
December 31, 2021
|
||||||||||||||||||||||||
New York and other states*:
|
||||||||||||||||||||||||
30-59
|
60-89
|
90 +
|
Total | |||||||||||||||||||||
Days | Days | Days |
30+ days
|
Total | ||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Current
|
Loans
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
Florida:
|
||||||||||||||||||||||||
30-59
|
60-89
|
90 +
|
Total | |||||||||||||||||||||
Days | Days | Days |
30+ days
|
Total | ||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Current
|
Loans
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
Total:
|
||||||||||||||||||||||||
30-59
|
60-89
|
90 +
|
Total | |||||||||||||||||||||
Days | Days | Days |
30+ days
|
Total | ||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Current
|
Loans
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
|
|
|
|
|
September 30,
2022
|
||||||||||||
(dollars in thousands) |
New York and
|
|||||||||||
|
other states*
|
Florida
|
Total
|
|||||||||
Loans in non-accrual status:
|
||||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|
||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total non-accrual loans
|
|
|
|
|||||||||
Restructured real estate mortgages - 1 to 4 family
|
|
|
|
|||||||||
Total nonperforming loans
|
$
|
|
$ |
|
$ |
|
December 31, 2021
|
||||||||||||
(dollars in thousands)
|
New York and
|
|||||||||||
|
other states*
|
Florida
|
Total
|
|||||||||
Loans in non-accrual status:
|
||||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total non-accrual loans
|
|
|
|
|||||||||
Restructured real estate mortgages - 1 to 4 family
|
|
|
|
|||||||||
Total nonperforming loans
|
$
|
|
|
|
September 30, 2022
|
||||||||||||
(dollars in thousands) |
Non-accrual With
|
Non-accrual With | Loans Past Due | |||||||||
No Allowance for
|
Allowance for
|
Over 89 Days
|
||||||||||
|
Credit Loss
|
Credit Loss
|
Still Accruing
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|
||||||
Other
|
|
|
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total loans, net
|
$
|
|
|
|
|
|
Type of Collateral
|
||||||||||||
(dollars in thousands) |
|
|||||||||||
|
Real Estate
|
Investment
Securities/Cash
|
Other
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
|
|
||||||||||
First mortgages
|
|
|
|
|||||||||
Home equity loans
|
|
|
|
|||||||||
Home equity lines of credit
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total Allowance
|
$
|
|
|
|
Three months ended September 30, 2022
|
Three months ended September 30, 2021
|
|||||||||||||||||||||||
New York and other states*: |
Pre-Modification
|
Post-Modification
|
Pre-Modification
|
Post-Modification
|
||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
Number of
|
Recorded | Recorded |
Number of
|
Recorded | Recorded | |||||||||||||||||||
(dollars in thousands)
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
|
$
|
|
|
|
$
|
|
|
||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
$
|
|
|
|
$
|
|
|
Florida:
|
Pre-Modification
|
Post-Modification
|
Pre-Modification
|
Post-Modification
|
||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
Number of
|
Recorded | Recorded |
Number of
|
Recorded | Recorded | |||||||||||||||||||
(dollars in thousands)
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
|
$
|
|
|
|
$
|
|
|
||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
$
|
|
|
|
$
|
|
|
Nine months
ended September 30, 2022
|
Nine months ended September 30, 2021
|
|||||||||||||||||||||||
New York and other states*:
|
Pre-Modification
|
Post-Modification
|
Pre-Modification
|
Post-Modification
|
||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
Number of
|
Recorded | Recorded |
Number of
|
Recorded | Recorded | |||||||||||||||||||
(dollars in thousands)
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
|
$
|
|
|
|
$
|
|
|
||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
$
|
|
|
|
$
|
|
|
Florida:
|
Pre-Modification
|
Post-Modification
|
Pre-Modification
|
Post-Modification
|
||||||||||||||||||||
Outstanding
|
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
Number of
|
Recorded | Recorded |
Number of
|
Recorded | Recorded | |||||||||||||||||||
(dollars in thousands)
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
|
$
|
|
|
|
$
|
|
|
||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Home equity loans
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
$
|
|
|
|
$
|
|
|
December 31, 2021
|
||||||||||||||||
|
||||||||||||||||
New York and other states*: | Unpaid |
YTD Avg
|
||||||||||||||
Recorded | Principal | Related | Recorded | |||||||||||||
(dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|||||||||||
Other
|
|
|
|
|
||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||
First mortgages
|
|
|
|
|
||||||||||||
Home equity loans
|
|
|
|
|
||||||||||||
Home equity lines of credit
|
|
|
|
|
||||||||||||
Total
|
$
|
|
|
|
|
Florida: | Unpaid |
YTD Avg
|
||||||||||||||
Recorded | Principal | Related | Recorded | |||||||||||||
(dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|||||||||||
Other
|
|
|
|
|
||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||
First mortgages
|
|
|
|
|
||||||||||||
Home equity loans
|
|
|
|
|
||||||||||||
Home equity lines of credit
|
|
|
|
|
||||||||||||
Total
|
$
|
|
|
|
|
Total: | Unpaid |
YTD Avg
|
||||||||||||||
Recorded | Principal | Related | Recorded | |||||||||||||
(dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
$
|
|
|
|
|
|||||||||||
Other
|
|
|
|
|
||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||
First mortgages
|
|
|
|
|
||||||||||||
Home equity loans
|
|
|
|
|
||||||||||||
Home equity lines of credit
|
|
|
|
|
||||||||||||
Total
|
$
|
|
|
|
|
December 31, 2021
|
||||||||||||
New York and other states:
|
||||||||||||
(dollars in thousands)
|
Pass
|
Classified
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
$
|
|
|
|
Florida:
|
||||||||||||
(dollars in thousands)
|
Pass
|
Classified
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
$
|
|
|
|
Total:
|
||||||||||||
(dollars in thousands)
|
Pass
|
Classified
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|||||||||
$
|
|
|
|
Fair Value Measurements at
|
||||||||||||||||
September 30,
2022 Using:
|
||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
(dollars in thousands)
|
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
U.S. government sponsored enterprises
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
||||||||||||
Small Business Administration- guaranteed participation securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Total securities available for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements at
|
||||||||||||||||
December 31, 2021 Using:
|
||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
(dollars in thousands)
|
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
||||||||||||
Small Business Administration- guaranteed participation securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Total securities available for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Fair Value Measurements at
|
|
|
||||||||||||||||||||
|
September 30, 2022 Using:
|
|
|
||||||||||||||||||||
Significant | |||||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||||||
(dollars in thousands)
|
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Valuation technique
|
Unobservable inputs
|
Range (Weighted Average)
|
||||||||||||||||
|
|
|
|||||||||||||||||||||
Other real estate owned
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
%)
|
|||||||||||
Loans individually evaluated
|
|
|
|
|
|
|
N/A
|
|
Fair Value Measurements at
|
|
|
||||||||||||||||||||
|
December 31, 2021 Using:
|
|
|
||||||||||||||||||||
Significant | |||||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||||||
(dollars in thousands)
|
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Valuation technique
|
Unobservable inputs
|
Range (Weighted Average)
|
||||||||||||||||
|
|
|
|||||||||||||||||||||
Other real estate owned
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
%)
|
|||||||||||
Impaired loans:
|
|||||||||||||||||||||||
Real estate mortgage -1 to 4 family
|
|
|
|
|
|
|
N/A |
|
(dollars in thousands)
|
Fair Value Measurements at
|
|||||||||||||||||||
Carrying
|
September 30,
2022 Using:
|
|||||||||||||||||||
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
|
|
|
|
||||||||||||||
Securities available for sale
|
|
|
|
|
|
|||||||||||||||
Held to maturity securities
|
|
|
|
|
|
|||||||||||||||
Federal Home Loan Bank stock
|
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Net loans
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Demand deposits
|
|
|
|
|
|
|||||||||||||||
Interest bearing deposits
|
|
|
|
|
|
|||||||||||||||
Short-term borrowings
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable
|
|
|
|
|
|
(dollars in thousands)
|
Fair Value Measurements at
|
|||||||||||||||||||
Carrying
|
December 31, 2021 Using:
|
|||||||||||||||||||
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
|
|
|
|
||||||||||||||
Securities available for sale
|
|
|
|
|
|
|||||||||||||||
Held to maturity securities
|
|
|
|
|
|
|||||||||||||||
Federal Reserve Bank and Federal
|
||||||||||||||||||||
Home Loan Bank stock
|
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Net loans
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Demand deposits
|
|
|
|
|
|
|||||||||||||||
Interest bearing deposits
|
|
|
|
|
|
|||||||||||||||
Short-term borrowings
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable
|
|
|
|
|
|
|
Three months ended September 30,
2022
|
|||||||||||||||||||
Amount | ||||||||||||||||||||
Other | reclassified | Other | ||||||||||||||||||
Comprehensive | from Accumulated | Comprehensive loss- | ||||||||||||||||||
Balance at | loss-Before | Other Comprehensive | Three months ended | Balance at | ||||||||||||||||
(dollars in thousands)
|
7/1/2022
|
Reclassifications
|
Income
|
9/30/2022
|
9/30/2022
|
|||||||||||||||
|
||||||||||||||||||||
Net unrealized holding loss on securities available for sale, net of tax
|
$
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
|
|
|
|
|
|||||||||||||||
Net change in net actuarial gain and prior service credit on pension and postretirement benefit plans, net of
tax
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Accumulated other comprehensive loss, net of tax
|
$
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Three months ended September 30,
2021
|
||||||||||||||||||||
Amount | ||||||||||||||||||||
Other | reclassified | Other | ||||||||||||||||||
Comprehensive | from Accumulated | Comprehensive loss- | ||||||||||||||||||
Balance at | loss-Before | Other Comprehensive | Three months ended | Balance at | ||||||||||||||||
(dollars in thousands)
|
7/1/2021
|
Reclassifications
|
Income
|
9/30/2021
|
9/30/2021
|
|||||||||||||||
Net unrealized holding gain on securities available for sale, net of tax
|
$
|
|
(
|
)
|
|
(
|
)
|
|
||||||||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
|
|
|
|
|
|||||||||||||||
Net change in net actuarial gain and prior service cost on pension and postretirement benefit plans, net of
tax
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||
Accumulated other comprehensive income, net of tax
|
$
|
|
(
|
)
|
|
(
|
)
|
|
|
Nine months
ended September 30, 2022
|
|||||||||||||||||||
Amount | ||||||||||||||||||||
Other | reclassified | Other | ||||||||||||||||||
Comprehensive | from Accumulated | Comprehensive loss- | ||||||||||||||||||
Balance at | loss-Before | Other Comprehensive |
Nine months ended | Balance at | ||||||||||||||||
(dollars in thousands)
|
1/1/2022
|
Reclassifications
|
Income
|
9/30/2022
|
9/30/2022
|
|||||||||||||||
|
||||||||||||||||||||
Net unrealized holding loss on securities available for sale, net of tax
|
$
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
|
|
|
|
|
|||||||||||||||
Net change in net actuarial gain and prior service credit on pension and postretirement benefit plans, net of
tax
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Accumulated other comprehensive income (loss), net of tax
|
$
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Nine months
ended September 30, 2021
|
||||||||||||||||||||
Amount | ||||||||||||||||||||
Other | reclassified | Other | ||||||||||||||||||
Comprehensive | from Accumulated | Comprehensive loss- | ||||||||||||||||||
Balance at | loss-Before | Other Comprehensive | Nine months ended | Balance at | ||||||||||||||||
(dollars in thousands)
|
1/1/2021
|
Reclassifications
|
Income
|
9/30/2021
|
9/30/2021
|
|||||||||||||||
Net unrealized holding gain on securities available for sale, net of tax
|
$
|
|
(
|
)
|
|
(
|
)
|
|
||||||||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
|
|
|
|
|
|||||||||||||||
Net change in net actuarial gain and prior service credit on pension and postretirement benefit plans, net of
tax
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Accumulated other comprehensive income (loss), net of tax
|
$
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(dollars in thousands)
|
Three months ended
|
Nine months
ended
|
|||||||||||||||
September 30,
|
September 30,
|
||||||||||||||||
2022
|
2021
|
2022
|
2021
|
Affected Line Item in Financial Statements | |||||||||||||
Amortization of pension and postretirement benefit items:
|
|||||||||||||||||
Amortization of net actuarial gain
|
$
|
|
|
$
|
|
|
Salaries and employee benefits |
||||||||||
Amortization of prior service credit (cost)
|
|
(
|
)
|
|
(
|
)
|
Salaries and employee benefits |
||||||||||
Income tax (benefit) expense
|
(
|
)
|
|
(
|
)
|
(
|
)
|
Income taxes |
|||||||||
Net of tax
|
|
(
|
)
|
|
|
||||||||||||
Total reclassifications, net of tax
|
$
|
|
(
|
)
|
$
|
|
|
(dollars in thousands)
|
Three months ended
|
Nine months
ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Non-interest income
|
||||||||||||||||
Service Charges on Deposits
|
||||||||||||||||
Overdraft fees
|
$
|
|
|
|
$
|
|
|
|
||||||||
Other
|
|
|
|
|
||||||||||||
Interchange Income
|
|
|
|
|
||||||||||||
Wealth management fees
|
|
|
|
|
||||||||||||
Other (a)
|
|
|
|
|
||||||||||||
Total non-interest income
|
$
|
|
|
|
$
|
|
|
|
(a) |
|
(dollars in thousands) |
Three months ended | |||||||
|
September 30,
|
|||||||
2022
|
2021
|
|||||||
Operating lease cost
|
$
|
|
|
|||||
Variable lease cost
|
|
|
||||||
Total Lease costs
|
$
|
|
|
(dollars in thousands) |
Nine months ended | |||||||
|
September 30,
|
|||||||
2022
|
2021
|
|||||||
Operating lease cost
|
$
|
|
|
|||||
Variable lease cost
|
|
|
||||||
Total Lease costs
|
$
|
|
|
(dollars in thousands) |
Nine months ended | |||||||
|
September 30,
|
|||||||
2022
|
2021
|
|||||||
Supplemental cash flows information:
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
|
|
|||||
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
||||||
Weighted average remaining lease term
|
|
|
||||||
Weighted average discount rate
|
|
%
|
|
%
|
(dollars in thousands)
|
||||
Year ending | ||||
December 31,
|
||||
2022(a)
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
$
|
|
||
Less: Interest
|
|
|||
Present value of lease liabilities
|
$
|
|
(a) |
|
(Bank Only)
|
||||||||||||||||
|
Minimum for
|
|||||||||||||||
|
As of September 30, 2022
|
Well
|
Capital Adequacy plus | |||||||||||||
Capital Conservation | ||||||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Capitalized(1)
|
Buffer (1)(2)
|
||||||||||||
|
||||||||||||||||
Tier 1 leverage ratio
|
$
|
|
|
%
|
|
%
|
|
%
|
||||||||
Common equity tier 1 capital
|
|
|
|
|
||||||||||||
Tier 1 risk-based capital
|
|
|
|
|
||||||||||||
Total risk-based capital
|
|
|
|
|
|
As of December 31, 2021
|
Well
|
Minimum for
|
|||||||||||||
Capital Adequacy plus | ||||||||||||||||
Capital Conservation | ||||||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Capitalized(1)
|
Buffer (1)(2)
|
||||||||||||
|
||||||||||||||||
Tier 1 leverage ratio
|
$
|
|
|
%
|
|
%
|
|
%
|
||||||||
Common equity tier 1 capital
|
|
|
|
|
||||||||||||
Tier 1 risk-based capital
|
|
|
|
|
||||||||||||
Total risk-based capital
|
|
|
|
|
(Consolidated)
|
||||||||||||
As of September 30, 2022
|
Minimum for
|
|||||||||||
Capital Adequacy plus | ||||||||||||
Capital Conservation | ||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Buffer (1)(2)
|
|||||||||
|
||||||||||||
Tier 1 leverage ratio
|
$
|
|
|
%
|
|
%
|
||||||
Common equity tier 1 capital
|
|
|
|
|
||||||||
Tier 1 risk-based capital
|
|
|
|
|
||||||||
Total risk-based capital
|
|
|
|
|
|
As of December 31, 2021
|
Minimum for
|
||||||||||
Capital Adequacy plus | ||||||||||||
Capital Conservation | ||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Buffer (1)(2)
|
|||||||||
|
||||||||||||
Tier 1 leverage ratio
|
$
|
|
|
%
|
|
%
|
||||||
Common equity Tier 1 capital
|
|
|
|
|||||||||
Tier 1 risk-based capital
|
|
|
|
|||||||||
Total risk-based capital
|
|
|
|
(1) |
|
(2) |
|
![]() |
![]() |
New York, New York
|
/s/ Crowe LLP
|
November 7, 2022
|
|
Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
• |
changes in local market areas and general business and economic trends, as well as changes in consumer spending, borrowing and savings habits; and our ability to assess and react effectively to such changes;
|
• |
the effects of the COVID-19 pandemic, which could cause, and in some instances has, caused us to experience a decline in the demand for products and services; an increase in loan delinquencies; problem assets
and foreclosures; a decline in collateral value; work force shortages, or other interruption or the unavailability of key employees; an increase in the allowance for credit losses on loans; a reduction in wealth management revenues; an
increase in Federal Deposit Insurance Corporation premiums; a reduction in the value of the securities portfolio; or a decline in the net worth and liquidity of loan guarantors;
|
• |
the impact of hurricanes, including Hurricane Ian, and other severe weather events on the communities we serve, which could have an adverse impact on our business and results of operation;
|
• |
changes in and uncertainty related to benchmark interest rates used to price loans and deposits;
|
• |
credit risks and risks from concentrations (by geographic area and by loan product) within our loan portfolio;
|
• |
TrustCo’s ability to continue to originate a significant volume of one- to- four family mortgage loans in its market areas and to otherwise maintain or increase its market share in the areas in which it
operates;
|
• |
TrustCo’s ability to continue to maintain noninterest expense and other overhead costs at reasonable levels relative to income;
|
• |
TrustCo’s ability to make accurate assumptions and judgments regarding the credit risks associated with its lending and investing activities, including changes in the level and direction
of loan delinquencies and charge-offs, changes in property values, and changes in estimates of the adequacy of the allowance for credit losses;
|
• |
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;
|
• |
restrictions or conditions imposed by TrustCo’s and Trustco Bank’s regulators on their operations that may make it more difficult to achieve TrustCo’s and Trustco Bank’s goals;
|
• |
the future earnings and capital levels of TrustCo and Trustco Bank and the continued non objection from TrustCo’s and Trustco Bank’s primary federal banking regulators under regulatory
rules to distribute capital from Trustco Bank to TrustCo, which could affect the ability of TrustCo to pay dividends;
|
• |
the results of supervisory monitoring or examinations of Trustco Bank and the Company by their respective primary federal banking regulators, including the possibility that the regulators
may, among other things, require us to increase our loss allowances or to take other actions that reduce capital or income;
|
• |
adverse conditions in the securities markets that lead to impairment in the value of securities in TrustCo’s investment portfolio;
|
• |
the perceived overall value of TrustCo’s products and services by users, including the features, pricing and quality, compared to competitors’ products and services and the willingness of
current and prospective customers to substitute competitors’ products and services for TrustCo’s products and services;
|
• |
the effect of changes in financial services laws and regulations (including laws concerning taxation, banking and securities) and the impact of other governmental initiatives affecting
the financial services industry, including regulatory capital requirements;
|
• |
changes in management personnel;
|
• |
real estate and collateral values;
|
• |
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, Financial Accounting Standards Board or the Public Company Accounting Oversight Board;
|
• |
disruptions, security breaches or other adverse events affecting the third-party vendors who perform several of our critical processing functions;
|
• |
technological changes and electronic, cyber and physical security breaches;
|
• |
TrustCo’s success at managing the risks involved in the foregoing and managing its business;
|
• |
Risks related to climate change; and
|
• |
other risks and uncertainties included under “Risk Factors” in our Form 10-K for the year ended December 31, 2021, as well as risks and uncertainties, if any, discussed elsewhere in this Form 10-Q and in our
other filings made from time to time with the SEC, or in materials incorporated therein by reference.
|
• |
See “Allowance for Credit Losses on Loans” for more information.
|
3 Month
Yield (%)
|
2 Year
Yield (%)
|
5 Year
Yield (%)
|
10 Year
Yield (%)
|
10 - 2 Year
Spread (%)
|
|||
Q3/21
|
Beg of Q3
|
0.05
|
0.25
|
0.87
|
1.45
|
1.20
|
|
Peak
|
0.07
|
0.31
|
1.02
|
1.55
|
1.25
|
||
Trough
|
0.03
|
0.17
|
0.65
|
1.19
|
0.98
|
||
End of Q3
|
0.04
|
0.28
|
0.98
|
1.52
|
1.24
|
||
Average in Q3
|
0.05
|
0.23
|
0.80
|
1.32
|
1.10
|
||
Q4/21
|
Beg of Q4
|
0.04
|
0.28
|
0.98
|
1.52
|
1.24
|
|
Peak
|
0.08
|
0.76
|
1.34
|
1.68
|
1.29
|
||
Trough
|
0.04
|
0.27
|
0.93
|
1.35
|
0.72
|
||
End of Q4
|
0.06
|
0.73
|
1.26
|
1.52
|
0.79
|
||
Average in Q4
|
0.05
|
0.53
|
1.18
|
1.53
|
1.00
|
||
Q1/22
|
Beg of Q1
|
0.06
|
0.73
|
1.26
|
1.52
|
0.79
|
|
Peak
|
0.59
|
2.35
|
2.55
|
2.48
|
0.89
|
||
Trough
|
0.08
|
0.77
|
1.37
|
1.63
|
0.04
|
||
End of Q1
|
0.52
|
2.28
|
2.42
|
2.32
|
0.04
|
||
Average in Q1
|
0.31
|
1.46
|
1.83
|
1.95
|
0.49
|
||
Q2/22
|
Beg of Q2
|
0.52
|
2.28
|
2.42
|
2.32
|
0.04
|
|
Peak
|
1.83
|
3.45
|
3.61
|
3.49
|
0.44
|
||
Trough
|
0.53
|
2.37
|
2.55
|
2.39
|
-0.05
|
||
End of Q2
|
1.72
|
2.92
|
3.01
|
2.98
|
0.06
|
||
Average in Q2
|
1.10
|
2.72
|
2.95
|
2.93
|
0.21
|
||
Q3/22
|
Beg of Q3
|
1.72
|
2.92
|
3.01
|
2.98
|
0.06
|
|
Peak
|
3.40
|
4.30
|
4.21
|
3.97
|
0.04
|
||
Trough
|
1.73
|
2.82
|
2.66
|
2.60
|
-0.51
|
||
End of Q3
|
3.33
|
4.22
|
4.06
|
3.83
|
-0.39
|
||
Average in Q3
|
2.75
|
3.38
|
3.23
|
3.10
|
-0.28
|
• |
An increase in income of $7.4 million from interest earning assets and a decrease in interest expense of $527 thousand from interest bearing liabilities, resulting in an increase in taxable equivalent net interest income in the third
quarter of 2022 compared to the third quarter of 2021 of $7.9 million.
|
• |
An increase of $2.9 million in provision for credit losses on loans primarily as a result of the ongoing uncertainty surrounding economic conditions and credit risk metrics. An increase of $200 thousand in unfunded commitments for the
third quarter of 2022 compared to the third quarter 2021 primarily as a result of an increase in unfunded loan commitments.
|
• |
An increase of $1.4 million in noninterest expense for the third quarter of 2022 compared to the third quarter 2021, primarily as a result of an increase in salaries and employee benefits, net occupancy expense, outsourced services,
advertising expense and other expenses.
|
• |
The average balance of Federal Funds sold and other short-term investments decreased by $247.8 million while the average yield increased 209 basis points in the third quarter of 2022 compared to the same period in 2021. The increase in
the average yield was a result of increases in the Federal Funds target rate during 2022 and was more than enough to offset the decrease in the average balance of Federal Funds sold.
|
• |
The average balance of securities available for sale increased by $67.6 million and the average yield also increased 76 basis points to 2.12%. The increase in the average yield was primarily a result of higher bond yields on purchases
throughout the year due to the changing interest rate environment.
|
• |
The average loan portfolio grew by $213.5 million to $4.59 billion and the average yield decreased 4 basis points to 3.57% in the third quarter of 2022 compared to the same period in 2021. The average yield decreased primarily as a
result of lower loan origination rates while rates remained low before the recent increases by the Federal Reserve Board, as well as the timing of PPP loan origination fees.
|
• |
The average balance of interest bearing liabilities decreased $76.0 million and the average rate paid decreased 4 basis points to 0.11% in the third quarter of 2022 compared to the same period in 2021. Prior to the recent interest rate
increases, time deposits were repricing at lower rates which drove down the rate paid on interest bearing liabilities. As time deposits reprice to current market rates we expect an increase in the average paid on interest bearing
liabilities.
|
(dollars in thousands)
|
||||
Under 1 year
|
$
|
786,544
|
||
1 to 2 years
|
71,291
|
|||
2 to 3 years
|
5,618
|
|||
3 to 4 years
|
936
|
|||
4 to 5 years
|
89,833
|
|||
Over 5 years
|
130
|
|||
$
|
954,352
|
•
|
unemployment rates declining 2% for both New York and Florida,
|
•
|
an increase in consumer price indices (“CPI”) of 0.2% for New York and 3% for Florida,
|
•
|
an increase in Gross Metro Product (“GMP”) of 2% for New York,
|
•
|
an increase in Gross Metro Product (“GMP”) of 4% for Florida.
|
As of
|
As of
|
|||||||||||||||
(dollars in thousands)
|
September 30, 2022
|
December 31, 2021
|
||||||||||||||
Percent of
|
Percent of
|
|||||||||||||||
Loans to
|
Loans to
|
|||||||||||||||
Amount
|
Total Loans
|
Amount
|
Total Loans
|
|||||||||||||
Commercial
|
$
|
2,169
|
4.20
|
%
|
$
|
2,942
|
4.08
|
%
|
||||||||
Real estate - construction
|
393
|
0.79
|
%
|
375
|
0.84
|
%
|
||||||||||
Real estate mortgage - 1 to 4 family
|
38,649
|
88.96
|
%
|
37,650
|
89.67
|
%
|
||||||||||
Home equity lines of credit
|
4,162
|
5.82
|
%
|
2,857
|
5.20
|
%
|
||||||||||
Installment Loans
|
144
|
0.23
|
%
|
443
|
0.21
|
%
|
||||||||||
$
|
45,517
|
100.00
|
%
|
$
|
44,267
|
100.00
|
%
|
As of September 30, 2022
|
Estimated Percentage of
Fair value of Capital to
Fair value of Assets
|
|||
+400 BP
|
30.90 %
|
|
||
+300 BP
|
30.60
|
|||
+200 BP
|
31.50
|
|||
+100 BP
|
31.60
|
|||
Current rates
|
30.60
|
|||
-100 BP
|
28.50
|
|||
-200 BP
|
25.30
|
|||
-300 BP
|
21.60
|
(Bank Only)
|
As of September 30, 2022
|
Well
|
Minimum for
Capital Adequacy plus |
|||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Capitalized(1)
|
Buffer (1)(2)
|
||||||||||||
Tier 1 leverage ratio
|
$
|
597,092
|
9.648
|
%
|
5.000
|
%
|
4.000
|
%
|
||||||||
Common equity tier 1 capital
|
597,092
|
18.333
|
6.500
|
7.000
|
||||||||||||
Tier 1 risk-based capital
|
597,092
|
18.333
|
8.000
|
8.500
|
||||||||||||
Total risk-based capital
|
637,906
|
19.586
|
10.000
|
10.500
|
As of December 31, 2021
|
Well
|
Minimum for
Capital Adequacy plus |
||||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Capitalized(1)
|
Buffer (1)(2)
|
||||||||||||
Tier 1 leverage ratio
|
$
|
570,594
|
9.324
|
%
|
5.000
|
%
|
4.000
|
%
|
||||||||
Common equity tier 1 capital
|
570,594
|
18.954
|
6.500
|
7.000
|
||||||||||||
Tier 1 risk-based capital
|
570,594
|
18.954
|
8.000
|
8.500
|
||||||||||||
Total risk-based capital
|
608,308
|
20.206
|
10.000
|
10.500
|
As of September 30, 2022
|
Minimum for
Capital Adequacy plus |
|||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Buffer (1)(2)
|
|||||||||
Tier 1 leverage ratio
|
$
|
613,661
|
9.913
|
%
|
4.000
|
%
|
||||||
Common equity tier 1 capital
|
613,661
|
18.837
|
7.000
|
|||||||||
Tier 1 risk-based capital
|
613,661
|
18.837
|
8.500
|
|||||||||
Total risk-based capital
|
654,486
|
20.090
|
10.500
|
As of December 31, 2021
|
Minimum for
Capital Adequacy plus |
|||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Buffer (1)(2)
|
|||||||||
Tier 1 leverage ratio
|
$
|
588,427
|
9.614
|
%
|
4.000
|
%
|
||||||
Common equity Tier 1 capital
|
588,427
|
19.541
|
7.000
|
|||||||||
Tier 1 risk-based capital
|
588,427
|
19.541
|
8.500
|
|||||||||
Total risk-based capital
|
626,150
|
20.794
|
10.500
|
|||||||||
(1) |
Federal regulatory minimum requirements to be considered to be Well Capitalized and Adequately Capitalized
|
(2) |
The September 30, 2022 and December 31, 2021 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent
|
(dollars in thousands)
|
Three months ended
September 30, 2022
|
Three months ended
September 30, 2021
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Rate
|
Average
Balance
|
Interest
|
Average
Rate
|
Change in
Interest
Income/
Expense
|
Variance
Balance
Change
|
Variance
Rate
Change
|
||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||||||
U. S. government sponsored enterprises
|
$
|
104,633
|
$
|
479
|
1.83
|
%
|
$
|
68,505
|
$
|
91
|
0.53
|
%
|
$
|
388
|
68
|
320
|
||||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
302,886
|
1,617
|
2.13
|
%
|
300,765
|
1,038
|
1.38
|
%
|
579
|
7
|
572
|
|||||||||||||||||||||||||
State and political subdivisions
|
41
|
1
|
8.12
|
%
|
48
|
2
|
6.66
|
%
|
(1
|
)
|
(1
|
)
|
-
|
|||||||||||||||||||||||
Corporate bonds
|
86,965
|
526
|
2.42
|
%
|
48,543
|
220
|
1.81
|
%
|
306
|
215
|
91
|
|||||||||||||||||||||||||
Small Business Administration-guaranteed participation securities
|
25,533
|
133
|
2.08
|
%
|
34,578
|
181
|
2.09
|
%
|
(48
|
)
|
(47
|
)
|
(1
|
)
|
||||||||||||||||||||||
Other
|
686
|
3
|
1.75
|
%
|
686
|
5
|
2.92
|
%
|
(2
|
)
|
-
|
(2
|
)
|
|||||||||||||||||||||||
Total securities available for sale
|
520,744
|
2,759
|
2.12
|
%
|
453,125
|
1,537
|
1.36
|
%
|
1,222
|
242
|
980
|
|||||||||||||||||||||||||
Federal funds sold and other short-term Investments
|
918,909
|
5,221
|
2.25
|
%
|
1,166,679
|
470
|
0.16
|
%
|
4,751
|
(704
|
)
|
5,455
|
||||||||||||||||||||||||
Held to maturity securities:
|
||||||||||||||||||||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
8,306
|
85
|
4.08
|
%
|
11,168
|
104
|
3.72
|
%
|
(19
|
)
|
(72
|
)
|
53
|
|||||||||||||||||||||||
Total held to maturity securities
|
8,306
|
85
|
4.08
|
%
|
11,168
|
104
|
3.72
|
%
|
(19
|
)
|
(72
|
)
|
53
|
|||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
5,797
|
80
|
5.52
|
%
|
5,604
|
64
|
4.57
|
%
|
16
|
2
|
14
|
|||||||||||||||||||||||||
Commercial loans
|
207,477
|
2,484
|
4.79
|
%
|
210,825
|
2,649
|
5.03
|
%
|
(165
|
)
|
(42
|
)
|
(123
|
)
|
||||||||||||||||||||||
Residential mortgage loans
|
4,105,859
|
35,342
|
3.44
|
%
|
3,920,903
|
34,532
|
3.52
|
%
|
810
|
4,773
|
(3,963
|
)
|
||||||||||||||||||||||||
Home equity lines of credit
|
261,575
|
2,896
|
4.39
|
%
|
231,269
|
2,152
|
3.69
|
%
|
744
|
304
|
440
|
|||||||||||||||||||||||||
Installment loans
|
10,213
|
174
|
6.75
|
%
|
8,669
|
155
|
7.10
|
%
|
19
|
63
|
(44
|
)
|
||||||||||||||||||||||||
Loans, net of unearned income
|
4,585,124
|
40,896
|
3.57
|
%
|
4,371,666
|
39,488
|
3.61
|
%
|
1,408
|
5,098
|
(3,690
|
)
|
||||||||||||||||||||||||
Total interest earning assets
|
6,038,880
|
49,041
|
3.24
|
%
|
6,008,242
|
41,663
|
2.77
|
%
|
7,378
|
4,566
|
2,812
|
|||||||||||||||||||||||||
Allowance for credit losses on loans
|
(45,519
|
)
|
(50,160
|
)
|
||||||||||||||||||||||||||||||||
Cash & non-interest earning assets
|
188,672
|
195,902
|
||||||||||||||||||||||||||||||||||
Total assets
|
$
|
6,182,033
|
$ |
6,153,984
|
||||||||||||||||||||||||||||||||
Liabilities and shareholders' equity
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts
|
1,195,370
|
43
|
0.01
|
%
|
$
|
1,153,812
|
$
|
38
|
0.01
|
%
|
5
|
1
|
4
|
|||||||||||||||||||||||
Money market accounts
|
744,868
|
237
|
0.13
|
%
|
738,662
|
202
|
0.11
|
%
|
35
|
2
|
33
|
|||||||||||||||||||||||||
Savings
|
1,579,513
|
200
|
0.05
|
%
|
1,430,558
|
154
|
0.04
|
%
|
46
|
17
|
29
|
|||||||||||||||||||||||||
Time deposits
|
981,704
|
646
|
0.26
|
%
|
1,152,298
|
1,149
|
0.40
|
%
|
(503
|
)
|
(152
|
)
|
(351
|
)
|
||||||||||||||||||||||
Total interest bearing deposits
|
4,501,455
|
1,126
|
0.10
|
%
|
4,475,330
|
1,543
|
0.14
|
%
|
(417
|
)
|
(132
|
)
|
(285
|
)
|
||||||||||||||||||||||
Short-term borrowings
|
138,105
|
122
|
0.35
|
%
|
240,183
|
232
|
0.38
|
%
|
(110
|
)
|
(90
|
)
|
(20
|
)
|
||||||||||||||||||||||
Total interest bearing liabilities
|
4,639,560
|
1,248
|
0.11
|
%
|
4,715,513
|
1,775
|
0.15
|
%
|
(527
|
)
|
(222
|
)
|
(305
|
)
|
||||||||||||||||||||||
Demand deposits
|
859,122
|
780,163
|
||||||||||||||||||||||||||||||||||
Other liabilities
|
82,290
|
75,116
|
||||||||||||||||||||||||||||||||||
Shareholders' equity
|
601,061
|
583,192
|
||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
6,182,033
|
$
|
6,153,984
|
||||||||||||||||||||||||||||||||
Net interest income, tax equivalent
|
47,793
|
39,888
|
$
|
7,905
|
4,788
|
3,117
|
||||||||||||||||||||||||||||||
Net interest spread
|
3.13
|
%
|
2.62
|
%
|
||||||||||||||||||||||||||||||||
Net interest margin (net interest income to total interest earning assets)
|
3.16
|
%
|
2.65
|
%
|
||||||||||||||||||||||||||||||||
Tax equivalent adjustment
|
-
|
(1
|
)
|
|||||||||||||||||||||||||||||||||
Net interest income
|
$ |
47,793
|
$ |
39,887
|
(dollars in thousands)
|
Nine months ended
September 30, 2022
|
Nine months ended
September 30, 2021
|
||||||||||||||||||||||||||||||||||
Assets
|
Average
Balance
|
Interest
|
Average
Rate
|
Average
Balance
|
Interest
|
Average
Rate
|
Change in
Interest
Income/
Expense
|
Variance
Balance
Change
|
Variance
Rate
Change
|
|||||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||||||
U. S. government sponsored enterprises
|
$
|
79,423
|
$ |
712
|
1.19
|
%
|
$
|
65,103
|
$ |
238
|
0.49
|
$
|
474
|
63
|
411
|
|||||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
282,423
|
4,071
|
1.92
|
%
|
318,472
|
3,442
|
1.44
|
629
|
(615
|
)
|
1,244
|
|||||||||||||||||||||||||
State and political subdivisions
|
41
|
2
|
6.73
|
%
|
49
|
3
|
8.16
|
(1
|
)
|
-
|
(1
|
)
|
||||||||||||||||||||||||
Corporate bonds
|
75,957
|
1,281
|
2.25
|
%
|
56,245
|
859
|
2.04
|
422
|
325
|
97
|
||||||||||||||||||||||||||
Small Business Administration-guaranteed participation securities
|
27,623
|
427
|
2.06
|
%
|
36,981
|
580
|
2.09
|
(153
|
)
|
(145
|
)
|
(8
|
)
|
|||||||||||||||||||||||
Other
|
686
|
7
|
2.04
|
%
|
686
|
16
|
3.11
|
(9
|
)
|
-
|
(9
|
)
|
||||||||||||||||||||||||
Total securities available for sale
|
466,153
|
6,500
|
2.79
|
%
|
477,536
|
5,138
|
1.43
|
1,362
|
(372
|
)
|
1,734
|
|||||||||||||||||||||||||
Federal funds sold and other short-term Investments
|
1,068,217
|
8,046
|
1.01
|
%
|
1,108,018
|
1,026
|
0.12
|
7,020
|
(63
|
)
|
7,083
|
|||||||||||||||||||||||||
Held to maturity securities:
|
||||||||||||||||||||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
8,897
|
262
|
3.93
|
%
|
12,199
|
338
|
3.70
|
(76
|
)
|
(108
|
)
|
32
|
||||||||||||||||||||||||
Total held to maturity securities
|
8,897
|
262
|
3.93
|
%
|
12,199
|
338
|
3.70
|
(76
|
)
|
(108
|
)
|
32
|
||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
5,734
|
207
|
7.22
|
%
|
5,570
|
198
|
4.74
|
9
|
-
|
9
|
||||||||||||||||||||||||||
Commercial loans
|
200,525
|
7,412
|
4.93
|
%
|
212,832
|
8,203
|
5.14
|
(791
|
)
|
(465
|
)
|
(326
|
)
|
|||||||||||||||||||||||
Residential mortgage loans
|
4,054,657
|
104,310
|
3.43
|
%
|
3,852,960
|
104,219
|
3.61
|
91
|
7,109
|
(7,018
|
)
|
|||||||||||||||||||||||||
Home equity lines of credit
|
246,026
|
7,289
|
3.96
|
%
|
234,682
|
6,622
|
3.77
|
667
|
329
|
338
|
||||||||||||||||||||||||||
Installment loans
|
9,507
|
492
|
6.91
|
%
|
8,608
|
469
|
7.28
|
23
|
58
|
(35
|
)
|
|||||||||||||||||||||||||
Loans, net of unearned income
|
4,510,715
|
119,503
|
3.53
|
%
|
4,309,082
|
119,513
|
3.70
|
(10
|
)
|
7,031
|
(7,041
|
)
|
||||||||||||||||||||||||
Total interest earning assets
|
6,059,716
|
134,518
|
2.96
|
%
|
5,912,405
|
126,213
|
2.85
|
8,305
|
6,488
|
1,817
|
||||||||||||||||||||||||||
Allowance for credit losses on loans
|
(46,225
|
)
|
(50,101
|
)
|
||||||||||||||||||||||||||||||||
Cash & non-interest earning assets
|
196,333
|
196,876
|
||||||||||||||||||||||||||||||||||
Total assets
|
$
|
6,209,824
|
$
|
6,059,180
|
||||||||||||||||||||||||||||||||
Liabilities and shareholders' equity
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts
|
$
|
1,199,154
|
129
|
0.01
|
%
|
$
|
1,129,480
|
136
|
0.02
|
(7
|
)
|
18
|
(25
|
)
|
||||||||||||||||||||||
Money market accounts
|
771,301
|
661
|
0.11
|
%
|
731,171
|
721
|
0.13
|
(60
|
)
|
65
|
(125
|
)
|
||||||||||||||||||||||||
Savings
|
1,557,503
|
519
|
0.04
|
%
|
1,376,494
|
475
|
0.05
|
44
|
106
|
(62
|
)
|
|||||||||||||||||||||||||
Time deposits
|
971,539
|
1,728
|
0.24
|
%
|
1,203,708
|
4,076
|
0.45
|
(2,348
|
)
|
(683
|
)
|
(1,665
|
)
|
|||||||||||||||||||||||
Total interest bearing deposits
|
4,499,497
|
3,037
|
0.09
|
%
|
4,440,853
|
5,408
|
0.16
|
(2,371
|
)
|
(494
|
)
|
(1,877
|
)
|
|||||||||||||||||||||||
Short-term borrowings
|
194,228
|
532
|
0.37
|
%
|
232,532
|
688
|
0.40
|
(156
|
)
|
(112
|
)
|
(44
|
)
|
|||||||||||||||||||||||
Total interest bearing liabilities
|
4,693,725
|
3,569
|
0.10
|
%
|
4,673,385
|
6,096
|
0.17
|
(2,527
|
)
|
(606
|
)
|
(1,921
|
)
|
|||||||||||||||||||||||
Demand deposits
|
836,953
|
735,495
|
||||||||||||||||||||||||||||||||||
Other liabilities
|
81,780
|
73,689
|
||||||||||||||||||||||||||||||||||
Shareholders' equity
|
597,366
|
576,611
|
||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
6,209,824
|
$
|
6,059,180
|
||||||||||||||||||||||||||||||||
Net interest income , tax equivalent
|
130,949
|
120,117
|
$
|
10,832
|
7,094
|
3,738
|
||||||||||||||||||||||||||||||
Net interest spread
|
2.86
|
%
|
2.67
|
|||||||||||||||||||||||||||||||||
Net interest margin (net interest income to total interest earning assets)
|
2.88
|
%
|
2.71
|
|||||||||||||||||||||||||||||||||
Tax equivalent adjustment
|
-
|
(1
|
)
|
|||||||||||||||||||||||||||||||||
Net interest income
|
$ |
130,949
|
$ |
120,116
|
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4. |
Controls and Procedures
|
PART II |
OTHER INFORMATION
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
Total
Numbers
of shares
purchased
|
Average price
paid per share
|
Total number of shares
purchased as part of
publicly announced
plans or programs
|
Maximum number of
shares that may yet be
purchased under the
plans or programs (1)
|
||||||||||||
July 1, 2022 through July 31, 2022
|
-
|
$
|
-
|
-
|
106,886
|
|||||||||||
August 1, 2022 through August 31, 2022
|
-
|
-
|
-
|
106,886
|
||||||||||||
September 1, 2022 through September 30, 2022
|
75,100
|
33.37
|
75,100
|
32,786
|
||||||||||||
Total
|
75,100
|
$
|
33.37
|
75,100
|
32,786
|
(1) |
On March 9, 2022 the Company’s Board of Directors authorized another share repurchase program of up to 200,000 shares, or approximately 1% of its currently outstanding common stock. During the three months ended September 30, 2022, the
Company repurchased a total of 75,100 shares at an average price per share of $33.37, for a total of $2.5 million under its Board authorized share repurchase program.
|
Item 3. |
Defaults Upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
Exhibit No.
|
Description
|
|
Amended and Restated Certificate of Incorporation of TrustCo Bank Corp NY (incorporated by reference to Exhibit 3.1 to TrustCo Bank Corp NY's Quarterly Report on Form 10-Q, filed August 5, 2021).
|
||
Amended and Restated Bylaws of TrustCo Bank Corp NY, dated May 23, 2019 (incorporated by reference to Exhibit 3.2 to TrustCo Bank Corp NY's Quarterly Report on Form 10-Q, filed August 8, 2019).
|
||
Crowe LLP Letter Regarding Unaudited Interim Financial Information
|
||
Rule 13a-14(a)/15d-14(a) Certification of Robert J. McCormick, principal executive officer.
|
||
Rule 13a-14(a)/15d-14(a) Certification of Michael M. Ozimek, principal financial officer.
|
||
Section 1350 Certifications of Robert J. McCormick, principal executive officer and Michael M. Ozimek, principal financial officer.
|
||
101
|
Sections of the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in XBRL (eXtensible Business Reporting Language), submitted in the following files:
|
|
101.INS
|
Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRLTaxonomy Extension Presentation Linkbase Document
|
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
TrustCo Bank Corp NY
|
||
By: /s/ Robert J. McCormick
|
||
Robert J. McCormick
|
||
Chairman, President and Chief Executive Officer
|
||
By: /s/ Michael M. Ozimek
|
||
Michael M. Ozimek
|
||
Executive Vice President and Chief Financial Officer
|
||
Date: November 7, 2022
|