Exhibit 99 (a)
|
News Release
|
|
5 Sarnowski Drive, Glenville, New York, 12302
(518) 377-3311 Fax: (518) 381-3668
|
|
Subsidiary:
|
Trustco Bank
|
NASDAQ -- TRST
|
| Contact: |
Robert Leonard
Executive Vice President and
Chief Risk Officer
(518) 381-3693
|
FOR IMMEDIATE RELEASE:
TrustCo Announces Third Quarter 2019 Results;
Net Income of $14.7 Million and 5.3% Average Residential Loan Growth Year over Year
Glenville, New York – October 21, 2019
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) · TrustCo Bank Corp NY today announced third quarter 2019 net income of $14.7 million or $0.152 diluted earnings per share compared to $15.2 million or $0.157
diluted earnings per share in the third quarter of 2018 despite an increase of $4.7 million in interest expense during the same time period. Similar results were noted during the nine month period wherein net income was $43.9 million for the nine
months ended September 30, 2019 versus $45.4 million for the same period in 2018 while total interest expense increased by $12.9 million.
Summary
Robert J. McCormick, Chairman, President and Chief Executive Officer noted, “We are pleased to be able to report an increase in average residential loan growth of 5.3%
or $175.6 million in the third quarter 2019 compared to the third quarter 2018. Our focus on traditional lending criteria, conservative balance sheet management and expense control has enabled us to produce consistent earnings, maintain strong
liquidity and capital, and allowed us to continue to grow our business and take advantage of changes in market and competitive conditions. Our strong financial condition is evidenced by our continued recognition as a BauerFinancial, Inc. 5-Star
Superior Bank Rating.” Average deposits increased 5.6% for the third quarter of 2019 compared to the third quarter 2018. Mr. McCormick further added “We continue to add core customer relationships, which ultimately drive future growth. Loan
growth and stabilizing cost of funds as a result of federal rate cuts have put us in a good position as we move forward.”
1
TrustCo saw solid loan growth in the third quarter of 2019 compared to the prior year led by an increase in residential mortgages. Loan portfolio expansion was funded
by a combination of utilizing our strong cash balances and growth in our deposit base. TrustCo’s strong liquidity position continues to allow it to take advantage of opportunities when interest rate conditions change.
Details
Average loans were up $158.4 million or 4.2% in the third quarter 2019 over the same period in 2018. Average residential loans, our primary lending focus, were up
$175.6 million or 5.3% in the third quarter 2019, over the same period in 2018. Average deposits are up $236.4 million or 5.6% for the third quarter 2019 over the same period a year earlier. The increase in deposits was the result of a $301.1
million or 26.0% increase in average time deposits over the same period last year. Excluding time deposits, total average core deposit accounts, which consist of checking, savings and money market deposits accounts, were down $64.7 million or 2.1%
for the third quarter 2019 compared to the third quarter 2018.
The cost of interest bearing liabilities increased to 0.94% in the third quarter 2019 from 0.52% in the third quarter 2018. The cost of savings and interest bearing
checking decreased slightly by 2 basis points and 3 basis points, respectively, from the third quarter 2018. Money market deposits increased 41 basis points to 0.83% versus 0.42% from the third quarter 2018. A significant portion of our CD
portfolio is expected to reprice during the fourth quarter which at current lower market rates will have a positive impact on net interest margin. The net interest spread for the third quarter 2019 was 2.88%, down 38 basis points from 3.26% in the
third quarter of 2018. Net interest income (TE) decreased by 4.6% or $1.9 million over the same period last year. Because we offered competitive shorter term rates, we expect margin to stabilize in the fourth quarter of 2019 as our shorter term
time deposits could reprice lower and provide opportunity for increased margin expansion.
The Bank continued to demonstrate its ability to grow shareholders’ equity as average equity was up $46.5 million or 9.8% in the third quarter of 2019 compared to the
same period in 2018. On this expanded equity, return on average assets and return on average equity for the third quarter 2019 were 1.12% and 11.19%, respectively, compared to 1.24% and 12.84% for the third quarter 2018. Improving efficiencies to
reduce costs continues to remain a key area of focus. Total operating expenses decreased by $474 thousand or 1.9% in the third quarter 2019 as compared to the third quarter 2018, driven by decreases in advertising expense, FDIC and other insurance
expense, and other real estate expense, partially offset by an increase in salaries and employee benefits. The growth in salaries and benefit expense was the result of our targeted effort to hire and retain talent.
2
Asset quality and the resulting loan loss reserve measures continued to improve. Nonperforming loans (NPLs) were $21.0 million at September 30, 2019, compared to
$23.8 million at September 30, 2018. NPLs were 0.53% of total loans at September 30, 2019, compared to 0.62% at September 30, 2018. The coverage ratio, or allowance for loan losses to NPLs, was 210.9% at September 30, 2019, compared to 188.0% at
September 30, 2018. Nonperforming assets (NPAs) were $23.4 million at September 30, 2019 compared to $26.1 million at September 30, 2018. The ratio of allowance for loan losses to total loans was 1.11% as of September 30, 2019, compared to 1.17%
at September 30, 2018 which reflects both an improvement in asset quality and economic conditions in our lending areas. The allowance for loan losses was $44.3 million at September 30, 2019 compared to $44.7 million at September 30, 2018. Net
chargeoffs for the third quarter 2019 were $36 thousand versus $67 thousand in the third quarter 2018. As a result of the aforementioned loan growth and improvement in asset quality trends, the Company did not record a provision for loan losses
during the third quarter 2019.
At September 30, 2019 the tangible equity to tangible asset ratio was 10.07%, compared to 9.76% at September 30, 2018. As mentioned earlier, the Company is proud of
its ability to grow shareholders’ equity. Tangible book value per share at September 30, 2019 was $5.42, up 9.94% compared to $4.93 a year earlier.
TrustCo Bank Corp NY is a $5.2 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 148 offices in New York, New Jersey,
Vermont, Massachusetts, and Florida at September 30, 2019.
In addition, the Bank’s Financial Services Department offers a full range of investment services, retirement planning and trust and estate administration services.
The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.
A conference call to discuss third quarter 2019 results will be held at 9:00 a.m. Eastern Time on October 22, 2019. Those wishing to
participate in the call may dial toll-free 1-888-339-0764. International callers must dial 1-412-902-4195. Please ask to be joined into the TrustCo Bank Corp
NY / TRST call. A replay of the call will be available for thirty days by dialing 1-877-344-7529 (1-412-317-0088 for international callers), Conference Number 10135926. The call will also be audio webcast at: https://services.choruscall.com/links/trst191022.html, and will be available for one year.
3
Safe Harbor Statement
All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future
periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during 2019, the impact of Federal Reserve actions regarding interest rates and the growth of loans and
deposits throughout our branch network, our ability to capitalize on economic changes in the areas in which we operate and the extent to which higher expenses to fulfill operating and regulatory requirements recur or diminish over time. Such
forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which
speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that
expressed in any forward-looking statement: our ability to continue to originate a significant volume of one-to-four family mortgage loans in our market areas; our ability to continue to maintain noninterest expense and other overhead costs at
reasonable levels relative to income; our ability to make accurate assumptions and judgments regarding the credit risks associated with lending and investing activities; the effects of, and changes in, trade, monetary and fiscal policies and laws,
including interest rate policies of the Federal Reserve Board, inflation, interest rates, market and monetary fluctuations; restrictions or conditions imposed by our regulators on our operations that may make it more difficult for us to achieve our
goals; the future earnings and capital levels of us and Trustco Bank and the continued receipt of approvals from our primary federal banking regulators under regulatory rules to distribute capital to TrustCo, which could affect our ability to pay
dividends; results of supervisory monitoring or examinations of Trustco Bank and TrustCo by our respective regulators; adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio;
unanticipated effects from the Tax Cut and Jobs Act that may limit its benefits or adversely impact our business; the perceived overall value of our products and services by users, including in comparison to competitors’ products and services and
the willingness of current and prospective customers to substitute competitors’ products and services for our products and services; changes in consumer spending, borrowing and saving habits; the effect of changes in financial services laws and
regulations and the impact of other governmental initiatives affecting the financial services industry; changes in management personnel; real estate and collateral values; changes in accounting policies and practices, as may be adopted by the bank
regulatory agencies, the FASB or PCAOB; 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; changes in local market areas and general business and economic trends, as well as changes in consumer spending and saving habits; our success at managing the risks involved in the foregoing and managing our business; and other
risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings.
4
TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
|
Three months ended
|
||||||||||||
|
9/30/2019
|
6/30/2019
|
9/30/2018
|
||||||||||
|
Summary of operations
|
||||||||||||
|
Net interest income (TE)
|
$
|
38,644
|
39,192
|
40,526
|
||||||||
|
(Credit) Provision for loan losses
|
-
|
(341
|
)
|
300
|
||||||||
|
Noninterest income
|
4,925
|
4,914
|
4,455
|
|||||||||
|
Noninterest expense
|
24,070
|
24,902
|
24,544
|
|||||||||
|
Net income
|
14,708
|
14,667
|
15,199
|
|||||||||
|
Per common share
|
||||||||||||
|
Net income per share:
|
||||||||||||
|
- Basic
|
$
|
0.152
|
0.152
|
0.157
|
||||||||
|
- Diluted
|
0.152
|
0.151
|
0.157
|
|||||||||
|
Cash dividends
|
0.068
|
0.068
|
0.068
|
|||||||||
|
Tangible Book value at period end
|
5.42
|
5.32
|
4.93
|
|||||||||
|
Market price at period end
|
8.15
|
7.92
|
8.50
|
|||||||||
|
At period end
|
||||||||||||
|
Full time equivalent employees
|
823
|
858
|
807
|
|||||||||
|
Full service banking offices
|
148
|
148
|
148
|
|||||||||
|
Performance ratios
|
||||||||||||
|
Return on average assets
|
1.12
|
%
|
1.14
|
1.24
|
||||||||
|
Return on average equity
|
11.19
|
11.60
|
12.84
|
|||||||||
|
Efficiency (1)
|
55.17
|
55.98
|
53.39
|
|||||||||
|
Net interest spread (TE)
|
2.88
|
2.95
|
3.26
|
|||||||||
|
Net interest margin (TE)
|
3.04
|
3.11
|
3.35
|
|||||||||
|
Dividend payout ratio
|
44.85
|
44.94
|
43.29
|
|||||||||
|
Capital ratios at period end
|
||||||||||||
|
Consolidated tangible equity to tangible assets (2)
|
10.07
|
%
|
9.85
|
9.76
|
||||||||
|
Consolidated equity to assets
|
10.07
|
%
|
9.86
|
9.77
|
||||||||
|
Asset quality analysis at period end
|
||||||||||||
|
Nonperforming loans to total loans
|
0.53
|
0.57
|
0.62
|
|||||||||
|
Nonperforming assets to total assets
|
0.45
|
0.47
|
0.53
|
|||||||||
|
Allowance for loan losses to total loans
|
1.11
|
1.14
|
1.17
|
|||||||||
|
Coverage ratio (3)
|
2.1
|
x
|
2.0
|
x
|
1.9
|
x
|
||||||
|
(1)
|
Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income.
|
|
(2)
|
Non-GAAP measure; calculated as total equity less $553 of intangible assets divided by total assets less $553 of intangible assets.
|
|
(3)
|
Calculated as allowance for loan losses divided by total nonperforming loans.
|
TE = Taxable equivalent
5
FINANCIAL HIGHLIGHTS, Continued
(dollars in thousands, except per share data)
(Unaudited)
|
Nine months ended
|
||||||||
|
09/30/19
|
09/30/18
|
|||||||
|
Summary of operations
|
||||||||
|
Net interest income (TE)
|
$
|
117,569
|
119,957
|
|||||
|
(Credit) Provision for loan losses
|
(41
|
)
|
900
|
|||||
|
Noninterest income
|
14,476
|
13,629
|
||||||
|
Noninterest expense
|
73,839
|
72,794
|
||||||
|
Net income
|
43,933
|
45,412
|
||||||
|
Per common share
|
||||||||
|
Net income per share:
|
||||||||
|
- Basic
|
$
|
0.454
|
0.471
|
|||||
|
- Diluted
|
0.453
|
0.470
|
||||||
|
Cash dividends
|
0.204
|
0.199
|
||||||
|
Tangible Book value at period end
|
5.42
|
4.93
|
||||||
|
Market price at period end
|
8.15
|
8.50
|
||||||
|
Performance ratios
|
||||||||
|
Return on average assets
|
1.14
|
1.24
|
||||||
|
Return on average equity
|
11.56
|
13.00
|
||||||
|
Efficiency (1)
|
55.75
|
53.60
|
||||||
|
Net interest spread (TE)
|
2.98
|
3.24
|
||||||
|
Net interest margin (TE)
|
3.13
|
3.32
|
||||||
|
Dividend payout ratio
|
45.00
|
42.35
|
||||||
|
(1)
|
Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net
securities transactions and gain on sale of building and nonperforming loans).
|
TE = Taxable equivalent.
6
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
|
Three months ended
|
||||||||||||||||||||
|
9/30/2019
|
6/30/2019
|
3/31/2019
|
12/31/2018
|
9/30/2018
|
||||||||||||||||
|
Interest and dividend income:
|
||||||||||||||||||||
|
Interest and fees on loans
|
$
|
41,923
|
41,432
|
41,253
|
41,184
|
40,073
|
||||||||||||||
|
Interest and dividends on securities available for sale:
|
||||||||||||||||||||
|
U. S. government sponsored enterprises
|
996
|
821
|
783
|
788
|
787
|
|||||||||||||||
|
State and political subdivisions
|
2
|
3
|
1
|
2
|
7
|
|||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
2,178
|
2,152
|
1,555
|
1,554
|
1,601
|
|||||||||||||||
|
Corporate bonds
|
321
|
272
|
208
|
202
|
202
|
|||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
282
|
289
|
297
|
329
|
325
|
|||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Other securities
|
6
|
5
|
5
|
5
|
4
|
|||||||||||||||
|
Total interest and dividends on securities available for sale
|
3,785
|
3,542
|
2,849
|
2,880
|
2,926
|
|||||||||||||||
|
Interest on held to maturity securities:
|
||||||||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
187
|
209
|
217
|
226
|
232
|
|||||||||||||||
|
Total interest on held to maturity securities
|
187
|
209
|
217
|
226
|
232
|
|||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
81
|
199
|
85
|
207
|
82
|
|||||||||||||||
|
Interest on federal funds sold and other short-term investments
|
2,552
|
3,282
|
3,009
|
2,367
|
2,425
|
|||||||||||||||
|
Total interest income
|
48,528
|
48,664
|
47,413
|
46,864
|
45,738
|
|||||||||||||||
|
Interest expense:
|
||||||||||||||||||||
|
Interest on deposits:
|
||||||||||||||||||||
|
Interest-bearing checking
|
52
|
94
|
121
|
111
|
113
|
|||||||||||||||
|
Savings
|
323
|
367
|
377
|
401
|
417
|
|||||||||||||||
|
Money market deposit accounts
|
1,177
|
1,119
|
826
|
618
|
544
|
|||||||||||||||
|
Time deposits
|
7,974
|
7,512
|
5,976
|
4,643
|
3,864
|
|||||||||||||||
|
Interest on short-term borrowings
|
359
|
381
|
381
|
352
|
277
|
|||||||||||||||
|
Total interest expense
|
9,885
|
9,473
|
7,681
|
6,125
|
5,215
|
|||||||||||||||
|
Net interest income
|
38,643
|
39,191
|
39,732
|
40,739
|
40,523
|
|||||||||||||||
|
Less: (Credit) Provision for loan losses
|
-
|
(341
|
)
|
300
|
500
|
300
|
||||||||||||||
|
Net interest income after provision for loan losses
|
38,643
|
39,532
|
39,432
|
40,239
|
40,223
|
|||||||||||||||
|
Noninterest income:
|
||||||||||||||||||||
|
Trustco Financial Services income
|
1,517
|
1,683
|
1,733
|
1,356
|
1,516
|
|||||||||||||||
|
Fees for services to customers
|
2,602
|
2,611
|
2,520
|
2,897
|
2,693
|
|||||||||||||||
|
Other
|
806
|
620
|
384
|
199
|
246
|
|||||||||||||||
|
Total noninterest income
|
4,925
|
4,914
|
4,637
|
4,452
|
4,455
|
|||||||||||||||
|
Noninterest expenses:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
11,725
|
11,711
|
11,451
|
10,183
|
10,761
|
|||||||||||||||
|
Net occupancy expense
|
4,094
|
4,006
|
4,167
|
4,800
|
3,997
|
|||||||||||||||
|
Equipment expense
|
1,689
|
1,709
|
1,902
|
1,741
|
1,783
|
|||||||||||||||
|
Professional services
|
1,507
|
1,568
|
1,650
|
1,733
|
1,578
|
|||||||||||||||
|
Outsourced services
|
1,875
|
1,875
|
1,925
|
1,875
|
1,875
|
|||||||||||||||
|
Advertising expense
|
494
|
778
|
785
|
876
|
844
|
|||||||||||||||
|
FDIC and other insurance
|
282
|
598
|
648
|
522
|
682
|
|||||||||||||||
|
Other real estate (income) expense, net
|
33
|
210
|
(24
|
)
|
37
|
528
|
||||||||||||||
|
Other
|
2,371
|
2,447
|
2,363
|
3,152
|
2,496
|
|||||||||||||||
|
Total noninterest expenses
|
24,070
|
24,902
|
24,867
|
24,919
|
24,544
|
|||||||||||||||
|
Income before taxes
|
19,498
|
19,544
|
19,202
|
19,772
|
20,134
|
|||||||||||||||
|
Income taxes
|
4,790
|
4,877
|
4,644
|
3,739
|
4,935
|
|||||||||||||||
|
Net income
|
$
|
14,708
|
14,667
|
14,558
|
16,033
|
15,199
|
||||||||||||||
|
Net income per common share:
|
||||||||||||||||||||
|
- Basic
|
$
|
0.152
|
0.152
|
0.150
|
0.166
|
0.157
|
||||||||||||||
|
|
||||||||||||||||||||
|
- Diluted
|
0.152
|
0.151
|
0.150
|
0.166
|
0.157
|
|||||||||||||||
|
Average basic shares (in thousands)
|
96,907
|
96,822
|
96,744
|
96,555
|
96,555
|
|||||||||||||||
|
Average diluted shares (in thousands)
|
96,977
|
96,891
|
96,822
|
96,689
|
96,689
|
|||||||||||||||
|
Note: Taxable equivalent net interest income
|
$
|
38,644
|
39,192
|
39,733
|
40,740
|
40,526
|
||||||||||||||
7
CONSOLIDATED STATEMENTS OF INCOME, Continued
(dollars in thousands, except per share data)
(Unaudited)
|
Nine months ended
|
||||||||
|
09/30/19
|
09/30/18
|
|||||||
|
Interest and dividend income:
|
||||||||
|
Interest and fees on loans
|
$
|
124,608
|
117,120
|
|||||
|
Interest and dividends on securities available for sale:
|
||||||||
|
U. S. government sponsored enterprises
|
2,600
|
2,324
|
||||||
|
State and political subdivisions
|
6
|
20
|
||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
5,885
|
5,039
|
||||||
|
Corporate bonds
|
801
|
485
|
||||||
|
Small Business Administration - guaranteed participation securities
|
868
|
1,010
|
||||||
|
Mortgage-backed securities and collateralized mortgage obligations - commercial
|
-
|
37
|
||||||
|
Other securities
|
16
|
13
|
||||||
|
Total interest and dividends on securities available for sale
|
10,176
|
8,928
|
||||||
|
Interest on held to maturity securities:
|
||||||||
|
Mortgage-backed securities-residential
|
613
|
736
|
||||||
|
Total interest on held to maturity securities
|
613
|
736
|
||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
365
|
357
|
||||||
|
Interest on federal funds sold and other short-term investments
|
8,843
|
6,909
|
||||||
|
Total interest income
|
144,605
|
134,050
|
||||||
|
Interest expense:
|
||||||||
|
Interest on deposits:
|
||||||||
|
Interest-bearing checking
|
267
|
331
|
||||||
|
Savings
|
1,067
|
1,256
|
||||||
|
Money market deposit accounts
|
3,122
|
1,435
|
||||||
|
Time deposits
|
21,462
|
10,163
|
||||||
|
Interest on short-term borrowings
|
1,121
|
918
|
||||||
|
Total interest expense
|
27,039
|
14,103
|
||||||
|
Net interest income
|
117,566
|
119,947
|
||||||
|
Less: (Credit) Provision for loan losses
|
(41
|
)
|
900
|
|||||
|
Net interest income after provision for loan losses
|
117,607
|
119,047
|
||||||
|
Noninterest income:
|
||||||||
|
Trustco Financial Services income
|
4,933
|
4,927
|
||||||
|
Fees for services to customers
|
7,733
|
8,015
|
||||||
|
Other
|
1,810
|
687
|
||||||
|
Total noninterest income
|
14,476
|
13,629
|
||||||
|
Noninterest expenses:
|
||||||||
|
Salaries and employee benefits
|
34,887
|
31,924
|
||||||
|
Net occupancy expense
|
12,267
|
12,413
|
||||||
|
Equipment expense
|
5,300
|
5,327
|
||||||
|
Professional services
|
4,725
|
4,822
|
||||||
|
Outsourced services
|
5,675
|
5,625
|
||||||
|
Advertising expense
|
2,057
|
2,144
|
||||||
|
FDIC and other insurance
|
1,528
|
2,219
|
||||||
|
Other real estate expense, net
|
219
|
1,194
|
||||||
|
Other
|
7,181
|
7,126
|
||||||
|
Total noninterest expenses
|
73,839
|
72,794
|
||||||
|
Income before taxes
|
58,244
|
59,882
|
||||||
|
Income taxes
|
14,311
|
14,470
|
||||||
|
Net income
|
$
|
43,933
|
45,412
|
|||||
|
Net income per common share:
|
||||||||
|
- Basic
|
$
|
0.454
|
0.471
|
|||||
|
|
||||||||
|
- Diluted
|
0.453
|
0.470
|
||||||
|
Average basic shares (in thousands)
|
96,825
|
96,453
|
||||||
|
Average diluted shares (in thousands)
|
96,897
|
96,587
|
||||||
|
Note: Taxable equivalent net interest income
|
$
|
117,569
|
119,957
|
|||||
8
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
|
9/30/2019
|
6/30/2019
|
3/31/2019
|
12/31/2018
|
9/30/2018
|
||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||
|
Cash and due from banks
|
$
|
49,526
|
42,471
|
43,064
|
49,260
|
42,195
|
||||||||||||||
|
Federal funds sold and other short term investments
|
401,151
|
517,684
|
576,123
|
454,449
|
423,254
|
|||||||||||||||
|
Total cash and cash equivalents
|
450,677
|
560,155
|
619,187
|
503,709
|
465,449
|
|||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||
|
U. S. government sponsored enterprises
|
164,490
|
184,448
|
148,292
|
152,160
|
150,053
|
|||||||||||||||
|
States and political subdivisions
|
169
|
170
|
172
|
173
|
180
|
|||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
406,166
|
354,679
|
312,946
|
262,032
|
269,093
|
|||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
50,970
|
53,091
|
54,113
|
56,475
|
57,894
|
|||||||||||||||
|
Corporate bonds
|
40,281
|
40,467
|
30,258
|
29,938
|
29,977
|
|||||||||||||||
|
Other securities
|
683
|
685
|
685
|
685
|
685
|
|||||||||||||||
|
Total securities available for sale
|
662,759
|
633,540
|
546,466
|
501,463
|
507,882
|
|||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations-residential
|
19,705
|
20,667
|
21,609
|
22,501
|
23,462
|
|||||||||||||||
|
Total held to maturity securities
|
19,705
|
20,667
|
21,609
|
22,501
|
23,462
|
|||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
9,183
|
9,183
|
8,953
|
8,953
|
8,953
|
|||||||||||||||
|
Loans:
|
||||||||||||||||||||
|
Commercial
|
192,443
|
190,507
|
190,347
|
196,146
|
190,987
|
|||||||||||||||
|
Residential mortgage loans
|
3,508,647
|
3,428,829
|
3,376,193
|
3,376,708
|
3,331,212
|
|||||||||||||||
|
Home equity line of credit
|
273,526
|
277,559
|
282,034
|
289,540
|
293,750
|
|||||||||||||||
|
Installment loans
|
10,703
|
9,514
|
12,579
|
11,702
|
9,967
|
|||||||||||||||
|
Loans, net of deferred net costs
|
3,985,319
|
3,906,409
|
3,861,153
|
3,874,096
|
3,825,916
|
|||||||||||||||
|
Less: Allowance for loan losses
|
44,329
|
44,365
|
44,671
|
44,766
|
44,736
|
|||||||||||||||
|
Net loans
|
3,940,990
|
3,862,044
|
3,816,482
|
3,829,330
|
3,781,180
|
|||||||||||||||
|
Bank premises and equipment, net
|
34,168
|
34,058
|
34,428
|
34,694
|
35,214
|
|||||||||||||||
|
Operating lease right-of-use assets
|
49,618
|
51,097
|
51,559
|
-
|
-
|
|||||||||||||||
|
Other assets
|
55,369
|
56,926
|
57,637
|
58,263
|
63,211
|
|||||||||||||||
|
Total assets
|
$
|
5,222,469
|
5,227,670
|
5,156,321
|
4,958,913
|
4,885,351
|
||||||||||||||
|
LIABILITIES:
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Demand
|
$
|
453,439
|
432,780
|
408,417
|
405,069
|
403,047
|
||||||||||||||
|
Interest-bearing checking
|
869,101
|
888,433
|
895,099
|
904,678
|
918,486
|
|||||||||||||||
|
Savings accounts
|
1,110,947
|
1,132,308
|
1,150,329
|
1,182,683
|
1,221,127
|
|||||||||||||||
|
Money market deposit accounts
|
570,457
|
562,318
|
538,043
|
507,311
|
501,270
|
|||||||||||||||
|
Time deposits
|
1,457,223
|
1,446,428
|
1,421,181
|
1,274,506
|
1,155,994
|
|||||||||||||||
|
Total deposits
|
4,461,167
|
4,462,267
|
4,413,069
|
4,274,247
|
4,199,924
|
|||||||||||||||
|
Short-term borrowings
|
151,095
|
166,746
|
159,778
|
161,893
|
176,377
|
|||||||||||||||
|
Operating lease liabilities
|
54,731
|
56,237
|
56,723
|
-
|
-
|
|||||||||||||||
|
Accrued expenses and other liabilities
|
29,313
|
26,790
|
25,033
|
32,902
|
31,932
|
|||||||||||||||
|
Total liabilities
|
4,696,306
|
4,712,040
|
4,654,603
|
4,469,042
|
4,408,233
|
|||||||||||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||||||||||||||
|
Capital stock
|
100,200
|
100,180
|
100,180
|
100,175
|
100,175
|
|||||||||||||||
|
Surplus
|
176,395
|
176,396
|
176,510
|
176,710
|
176,764
|
|||||||||||||||
|
Undivided profits
|
280,542
|
272,433
|
264,364
|
256,397
|
246,965
|
|||||||||||||||
|
Accumulated other comprehensive loss, net of tax
|
(71
|
)
|
(1,774
|
)
|
(7,011
|
)
|
(10,309
|
)
|
(13,000
|
)
|
||||||||||
|
Treasury stock at cost
|
(30,903
|
)
|
(31,605
|
)
|
(32,325
|
)
|
(33,102
|
)
|
(33,786
|
)
|
||||||||||
|
Total shareholders' equity
|
526,163
|
515,630
|
501,718
|
489,871
|
477,118
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
5,222,469
|
5,227,670
|
5,156,321
|
4,958,913
|
4,885,351
|
||||||||||||||
|
Outstanding shares (in thousands)
|
96,917
|
96,822
|
96,746
|
96,659
|
96,586
|
|||||||||||||||
9
NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
|
9/30/2019
|
6/30/2019
|
3/31/2019
|
12/31/2018
|
9/30/2018
|
||||||||||||||||
|
Nonperforming Assets
|
||||||||||||||||||||
|
New York and other states*
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$
|
888
|
905
|
701
|
645
|
928
|
||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
18,275
|
19,633
|
22,343
|
22,373
|
20,750
|
|||||||||||||||
|
Installment
|
13
|
1
|
26
|
4
|
13
|
|||||||||||||||
|
Total non-accrual loans
|
19,176
|
20,539
|
23,070
|
23,022
|
21,691
|
|||||||||||||||
|
Other nonperforming real estate mortgages - 1 to 4 family
|
30
|
31
|
33
|
34
|
35
|
|||||||||||||||
|
Total nonperforming loans
|
19,206
|
20,570
|
23,103
|
23,056
|
21,726
|
|||||||||||||||
|
Other real estate owned
|
2,409
|
2,625
|
1,262
|
1,675
|
2,306
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
21,615
|
23,195
|
24,365
|
24,731
|
24,032
|
||||||||||||||
|
Florida
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
1,809
|
1,564
|
1,644
|
1,915
|
2,054
|
|||||||||||||||
|
Installment
|
-
|
-
|
-
|
15
|
13
|
|||||||||||||||
|
Total non-accrual loans
|
1,809
|
1,564
|
1,644
|
1,930
|
2,067
|
|||||||||||||||
|
Other nonperforming real estate mortgages - 1 to 4 family
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Total nonperforming loans
|
1,809
|
1,564
|
1,644
|
1,930
|
2,067
|
|||||||||||||||
|
Other real estate owned
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
1,809
|
1,564
|
1,644
|
1,930
|
2,067
|
||||||||||||||
|
Total
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$
|
888
|
905
|
701
|
645
|
928
|
||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
20,084
|
21,197
|
23,987
|
24,288
|
22,804
|
|||||||||||||||
|
Installment
|
13
|
1
|
26
|
19
|
26
|
|||||||||||||||
|
Total non-accrual loans
|
20,985
|
22,103
|
24,714
|
24,952
|
23,758
|
|||||||||||||||
|
Other nonperforming real estate mortgages - 1 to 4 family
|
30
|
31
|
33
|
34
|
35
|
|||||||||||||||
|
Total nonperforming loans
|
21,015
|
22,134
|
24,747
|
24,986
|
23,793
|
|||||||||||||||
|
Other real estate owned
|
2,409
|
2,625
|
1,262
|
1,675
|
2,306
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
23,424
|
24,759
|
26,009
|
26,661
|
26,099
|
||||||||||||||
|
Quarterly Net (Recoveries) Chargeoffs
|
||||||||||||||||||||
|
New York and other states*
|
||||||||||||||||||||
|
Commercial
|
$
|
(28
|
)
|
(1
|
)
|
4
|
99
|
(2
|
)
|
|||||||||||
|
Real estate mortgage - 1 to 4 family
|
39
|
(54
|
)
|
318
|
323
|
(3
|
)
|
|||||||||||||
|
Installment
|
9
|
45
|
23
|
35
|
64
|
|||||||||||||||
|
Total net chargeoffs (recoveries)
|
$
|
20
|
(10
|
)
|
345
|
457
|
59
|
|||||||||||||
|
Florida
|
||||||||||||||||||||
|
Commercial
|
$
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
|
Real estate mortgage - 1 to 4 family
|
-
|
(25
|
)
|
19
|
(3
|
)
|
-
|
|||||||||||||
|
Installment
|
16
|
-
|
31
|
16
|
8
|
|||||||||||||||
|
Total net chargeoffs (recoveries)
|
$
|
16
|
(25
|
)
|
50
|
13
|
8
|
|||||||||||||
|
Total
|
||||||||||||||||||||
|
Commercial
|
$
|
(28
|
)
|
(1
|
)
|
4
|
99
|
(2
|
)
|
|||||||||||
|
Real estate mortgage - 1 to 4 family
|
39
|
(79
|
)
|
337
|
320
|
(3
|
)
|
|||||||||||||
|
Installment
|
25
|
45
|
54
|
51
|
72
|
|||||||||||||||
|
Total net chargeoffs (recoveries)
|
$
|
36
|
(35
|
)
|
395
|
470
|
67
|
|||||||||||||
|
Asset Quality Ratios
|
||||||||||||||||||||
|
Total nonperforming loans (1)
|
$
|
21,015
|
22,134
|
24,747
|
24,986
|
23,793
|
||||||||||||||
|
Total nonperforming assets (1)
|
23,424
|
24,759
|
26,009
|
26,661
|
26,099
|
|||||||||||||||
|
Total net chargeoffs (recoveries) (2)
|
36
|
(35
|
)
|
395
|
470
|
67
|
||||||||||||||
|
Allowance for loan losses (1)
|
44,329
|
44,365
|
44,671
|
44,766
|
44,736
|
|||||||||||||||
|
Nonperforming loans to total loans
|
0.53
|
%
|
0.57
|
%
|
0.64
|
%
|
0.64
|
%
|
0.62
|
%
|
||||||||||
|
Nonperforming assets to total assets
|
0.45
|
%
|
0.47
|
%
|
0.50
|
%
|
0.54
|
%
|
0.53
|
%
|
||||||||||
|
Allowance for loan losses to total loans
|
1.11
|
%
|
1.14
|
%
|
1.16
|
%
|
1.16
|
%
|
1.17
|
%
|
||||||||||
|
Coverage ratio (1)
|
210.9
|
%
|
200.4
|
%
|
180.5
|
%
|
179.2
|
%
|
188.0
|
%
|
||||||||||
|
Annualized net chargeoffs to average loans (2)
|
0.00
|
%
|
0.00
|
%
|
0.04
|
%
|
0.05
|
%
|
0.01
|
%
|
||||||||||
|
Allowance for loan losses to annualized net chargeoffs (2)
|
307.8
|
x
|
-316.9
|
x
|
28.3
|
x
|
23.8
|
x
|
166.9
|
x
|
||||||||||
* Includes New York, New Jersey, Vermont and Massachusetts.
|
(1)
|
At period-end
|
|
(2)
|
For the period ended
|
10
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL
(dollars in thousands)
(Unaudited)
|
Three months ended
September 30, 2019 |
Three months ended
September 30, 2018 |
|||||||||||||||||||||||
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
|
Balance
|
Rate
|
Balance
|
Rate
|
|||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||||||
|
U. S. government sponsored enterprises
|
$
|
183,580
|
996
|
2.17
|
%
|
$
|
154,865
|
787
|
2.03
|
%
|
||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - residential
|
370,808
|
2,178
|
2.35
|
287,760
|
1,601
|
2.23
|
||||||||||||||||||
|
State and political subdivisions
|
166
|
3
|
7.23
|
453
|
10
|
8.88
|
||||||||||||||||||
|
Corporate bonds
|
40,231
|
321
|
3.19
|
30,110
|
202
|
2.68
|
||||||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
51,988
|
282
|
2.17
|
62,368
|
325
|
2.09
|
||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - commercial
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
|
Other
|
685
|
6
|
3.50
|
685
|
4
|
2.34
|
||||||||||||||||||
|
Total securities available for sale
|
647,458
|
3,786
|
2.34
|
536,241
|
2,929
|
2.18
|
||||||||||||||||||
|
Federal funds sold and other short-term Investments
|
465,251
|
2,552
|
2.19
|
486,552
|
2,425
|
1.98
|
||||||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - residential
|
20,197
|
187
|
3.70
|
24,080
|
232
|
3.86
|
||||||||||||||||||
|
Total held to maturity securities
|
20,197
|
187
|
3.70
|
24,080
|
232
|
3.86
|
||||||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
9,183
|
81
|
3.53
|
8,953
|
82
|
3.66
|
||||||||||||||||||
|
Commercial loans
|
190,538
|
2,596
|
5.45
|
188,757
|
2,480
|
5.25
|
||||||||||||||||||
|
Residential mortgage loans
|
3,465,102
|
35,743
|
4.13
|
3,289,534
|
33,949
|
4.13
|
||||||||||||||||||
|
Home equity lines of credit
|
275,047
|
3,401
|
4.95
|
294,518
|
3,418
|
4.60
|
||||||||||||||||||
|
Installment loans
|
9,967
|
183
|
7.34
|
9,447
|
226
|
9.51
|
||||||||||||||||||
|
Loans, net of unearned income
|
3,940,654
|
41,923
|
4.26
|
3,782,256
|
40,073
|
4.23
|
||||||||||||||||||
|
Total interest earning assets
|
5,082,743
|
48,529
|
3.82
|
4,838,082
|
45,741
|
3.78
|
||||||||||||||||||
|
Allowance for loan losses
|
(44,448
|
)
|
(44,770
|
)
|
||||||||||||||||||||
|
Cash & non-interest earning assets
|
188,528
|
120,474
|
||||||||||||||||||||||
|
Total assets
|
$
|
5,226,823
|
$
|
4,913,786
|
||||||||||||||||||||
|
Liabilities and shareholders' equity
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Interest bearing checking accounts
|
$
|
874,179
|
52
|
0.02
|
%
|
$
|
913,150
|
113
|
0.05
|
%
|
||||||||||||||
|
Money market accounts
|
567,554
|
1,177
|
0.83
|
508,795
|
544
|
0.42
|
||||||||||||||||||
|
Savings
|
1,126,935
|
323
|
0.11
|
1,244,889
|
417
|
0.13
|
||||||||||||||||||
|
Time deposits
|
1,457,510
|
7,974
|
2.19
|
1,156,422
|
3,864
|
1.33
|
||||||||||||||||||
|
Total interest bearing deposits
|
4,026,178
|
9,526
|
0.95
|
3,823,256
|
4,938
|
0.51
|
||||||||||||||||||
|
Short-term borrowings
|
160,162
|
359
|
0.90
|
183,796
|
277
|
0.60
|
||||||||||||||||||
|
Total interest bearing liabilities
|
4,186,340
|
9,885
|
0.94
|
4,007,052
|
5,215
|
0.52
|
||||||||||||||||||
|
Demand deposits
|
438,789
|
405,311
|
||||||||||||||||||||||
|
Other liabilities
|
80,188
|
26,429
|
||||||||||||||||||||||
|
Shareholders' equity
|
521,506
|
474,994
|
||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
5,226,823
|
$
|
4,913,786
|
||||||||||||||||||||
|
Net interest income, tax equivalent
|
38,644
|
40,526
|
||||||||||||||||||||||
|
Net interest spread
|
2.88
|
%
|
3.26
|
%
|
||||||||||||||||||||
|
Net interest margin (net interest income to total interest earning assets)
|
3.04
|
%
|
3.35
|
%
|
||||||||||||||||||||
|
Tax equivalent adjustment
|
(1
|
)
|
(3
|
)
|
||||||||||||||||||||
|
Net interest income
|
38,643
|
40,523
|
||||||||||||||||||||||
11
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
(dollars in thousands)
(Unaudited)
|
Nine months ended
September 30, 2019 |
Nine months ended
September 30, 2018 |
|||||||||||||||||||||||
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
|
Balance
|
Rate
|
Balance
|
Rate
|
|||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||||||
|
U. S. government sponsored enterprises
|
$
|
166,119
|
2,600
|
2.09
|
%
|
$
|
155,434
|
2,324
|
1.99
|
%
|
||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - residential
|
329,188
|
5,885
|
2.38
|
300,645
|
5,039
|
2.23
|
||||||||||||||||||
|
State and political subdivisions
|
167
|
9
|
7.19
|
494
|
30
|
8.14
|
||||||||||||||||||
|
Corporate bonds
|
33,678
|
801
|
3.17
|
30,384
|
485
|
2.13
|
||||||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
54,414
|
868
|
2.13
|
64,769
|
1,010
|
2.08
|
||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - commercial
|
-
|
-
|
-
|
3,651
|
37
|
1.34
|
||||||||||||||||||
|
Other
|
685
|
16
|
3.11
|
685
|
13
|
2.53
|
||||||||||||||||||
|
Total securities available for sale
|
584,251
|
10,179
|
2.32
|
556,062
|
8,938
|
2.14
|
||||||||||||||||||
|
Federal funds sold and other short-term Investments
|
504,512
|
8,843
|
2.34
|
521,470
|
6,909
|
1.77
|
||||||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - residential
|
21,123
|
613
|
3.87
|
25,410
|
736
|
3.86
|
||||||||||||||||||
|
Total held to maturity securities
|
21,123
|
613
|
3.87
|
25,410
|
736
|
3.86
|
||||||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
9,104
|
365
|
5.35
|
8,893
|
357
|
5.35
|
||||||||||||||||||
|
Commercial loans
|
191,370
|
7,725
|
5.38
|
187,198
|
7,336
|
5.23
|
||||||||||||||||||
|
Residential mortgage loans
|
3,412,411
|
105,786
|
4.13
|
3,214,950
|
99,123
|
4.11
|
||||||||||||||||||
|
Home equity lines of credit
|
280,248
|
10,441
|
4.97
|
299,723
|
10,018
|
4.47
|
||||||||||||||||||
|
Installment loans
|
10,718
|
656
|
8.16
|
8,831
|
644
|
9.75
|
||||||||||||||||||
|
Loans, net of unearned income
|
3,894,747
|
124,608
|
4.27
|
3,710,702
|
117,120
|
4.21
|
||||||||||||||||||
|
Total interest earning assets
|
5,013,737
|
144,608
|
3.85
|
4,822,537
|
134,060
|
3.71
|
||||||||||||||||||
|
Allowance for loan losses
|
(44,744
|
)
|
(44,573
|
)
|
||||||||||||||||||||
|
Cash & non-interest earning assets
|
180,568
|
123,134
|
||||||||||||||||||||||
|
Total assets
|
$
|
5,149,561
|
$
|
4,901,098
|
||||||||||||||||||||
|
Liabilities and shareholders' equity
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Interest bearing checking accounts
|
$
|
878,106
|
267
|
0.04
|
%
|
$
|
899,319
|
331
|
0.05
|
%
|
||||||||||||||
|
Money market accounts
|
546,601
|
3,122
|
0.76
|
528,310
|
1,435
|
0.36
|
||||||||||||||||||
|
Savings
|
1,141,607
|
1,067
|
0.12
|
1,255,245
|
1,256
|
0.13
|
||||||||||||||||||
|
Time deposits
|
1,416,306
|
21,462
|
2.02
|
1,124,592
|
10,163
|
1.21
|
||||||||||||||||||
|
Total interest bearing deposits
|
3,982,620
|
25,918
|
0.87
|
3,807,466
|
13,185
|
0.46
|
||||||||||||||||||
|
Short-term borrowings
|
160,647
|
1,121
|
0.93
|
202,412
|
918
|
0.61
|
||||||||||||||||||
|
Total interest bearing liabilities
|
4,143,267
|
27,039
|
0.87
|
4,009,878
|
14,103
|
0.47
|
||||||||||||||||||
|
Demand deposits
|
418,327
|
396,288
|
||||||||||||||||||||||
|
Other liabilities
|
79,937
|
28,062
|
||||||||||||||||||||||
|
Shareholders' equity
|
508,030
|
466,870
|
||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
5,149,561
|
$
|
4,901,098
|
||||||||||||||||||||
|
Net interest income, tax equivalent
|
117,569
|
119,957
|
||||||||||||||||||||||
|
Net interest spread
|
2.98
|
%
|
3.24
|
%
|
||||||||||||||||||||
|
Net interest margin (net interest income to total interest earning assets)
|
3.13
|
%
|
3.32
|
%
|
||||||||||||||||||||
|
Tax equivalent adjustment
|
(3
|
)
|
(10
|
)
|
||||||||||||||||||||
|
Net interest income
|
117,566
|
119,947
|
||||||||||||||||||||||
12
Non-GAAP Financial Measures Reconciliation
Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and
tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at
period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. We calculate the efficiency ratio by
dividing total noninterest expenses as determined under GAAP, but excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, but excluding net gains on the sale
of nonperforming loans and securities and other non-routine items from this calculation. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue.
We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our
management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different
calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share, efficiency
ratio, net income and net income per share to the underlying GAAP numbers is set forth below.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(dollars in thousands, except per share amounts)
(Unaudited)
|
9/30/2019
|
6/30/2019
|
9/30/2018
|
||||||||||
|
Tangible Equity to Tangible Assets
|
||||||||||||
|
Total Assets
|
$
|
5,222,469
|
5,227,670
|
4,885,351
|
||||||||
|
Less: Intangible assets
|
553
|
553
|
553
|
|||||||||
|
Tangible assets
|
5,221,916
|
5,227,117
|
4,884,798
|
|||||||||
|
Equity
|
526,163
|
515,630
|
477,118
|
|||||||||
|
Less: Intangible assets
|
553
|
553
|
553
|
|||||||||
|
Tangible equity
|
525,610
|
515,077
|
476,565
|
|||||||||
|
Tangible Equity to Tangible Assets
|
10.07
|
%
|
9.85
|
%
|
9.76
|
%
|
||||||
|
Equity to Assets
|
10.07
|
%
|
9.86
|
%
|
9.77
|
%
|
||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||||||
|
Efficiency Ratio
|
9/30/2019
|
6/30/2019
|
9/30/2018
|
9/30/2019
|
9/30/2018
|
|||||||||||||||
|
Net interest income (fully taxable equivalent)
|
$
|
38,644
|
39,192
|
40,526
|
$
|
117,569
|
119,957
|
|||||||||||||
|
Non-interest income
|
4,925
|
4,914
|
4,455
|
14,476
|
13,629
|
|||||||||||||||
|
Revenue used for efficiency ratio
|
43,569
|
44,106
|
44,981
|
132,045
|
133,586
|
|||||||||||||||
|
Total noninterest expense
|
24,070
|
24,902
|
24,544
|
73,839
|
72,794
|
|||||||||||||||
|
Less: Other real estate (income) expense, net
|
33
|
210
|
528
|
219
|
1,194
|
|||||||||||||||
|
Expense used for efficiency ratio
|
24,037
|
24,692
|
24,016
|
73,620
|
71,600
|
|||||||||||||||
|
Efficiency Ratio
|
55.17
|
%
|
55.98
|
%
|
53.39
|
%
|
55.75
|
%
|
53.60
|
%
|
||||||||||
13