Trustco Bank Corp Ny · NASDAQ:TRST
Trustco Bank Corp Ny — Q2 2024 Earnings Presentation
23 slides from Trustco Bank Corp Ny's earnings presentation, August 2024
Slide 1: TrustCo Bank Corp NY 2024 Company Overview
TRUSTCO BANK CORP NY 2024 COMPANY OVERVIEW
Slide 2: Company Profile
Company Profile Headquarters Glenville, NY Founded 1902 Ticker NASDAQ: TRST Market Cap $673m Map legend: Branches 138 Blue = counties with physical Trustco Bank locations Yellow = lending areas with no locations Institutional 68.71% Ownership Lines of Business Commercial Consumer Banking Other Servi
Slide 3: History of Trustco Bank
History of Trustco Bank 2022: 2024: 120 Year Celebrated March 2003: Anniversary, 100 Year 1919: April 2002: TrustCo Assets Anniversary 1991: entered the 2012: 2023: Schenectady TrustCo’s De May 2021: topped $6.1 of Mont Founded Trust Company July, 1982: Completed Novo Florida Assets were Completion
Slide 4: Longevity of our Branches
Longevity of our Branches 50 - 100 Years 20 Years 15 Years Strong 10 Years Strong Strong Strong 122 Years Strong Main Office: 1902 TRUSTCO BANK CORP NY 4
Slide 5: Q2 2024 Highlights
Q2 2024 Highlights Second Quarter 2024 Year over year average loan growth of $182.2 million, or 3.8%. Loan portfolio 2.53% has reached new highs each quarter from Q3 2019 to Q2 2024. Net Interest Margin (QTD) Continued strong asset quality. TRST booked net recoveries in 9 out of the last 10 quar
Slide 6: Loan Portfolio
Loan Portfolio Yield on Loans (%) / Total Loans ($ in billions) $5.10 4.20% $5.04 $5.00 $5.01 4.10% $5.00 $4.96 4.04% 4.00% $4.89 $4.90 3.94% 3.98% 3.90% $4.80 $4.80 3.89% 3.80% Quarterly Loan Yields for Q2 2024 $4.73 3.81% $4.70 3.70% $4.63 3.73% New Line of Business Portfolio 3.65% 3.60% Originati
Slide 7: Consistent and Organic Loan Growth
$ in thousands Consistent and Organic Loan Growth $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 24 Q2 24 TRUSTCO BANK CORP NY 7
Slide 8: Consistently Strong Credit Quality Compared to Peers
Consistently Strong Credit Quality Compared to Peers Net Charge-Offs (Recoveries) / Average Loans: 0.13 0.12 0.11 0.11 0.1 0.09 0.09 0.09 0.08 0.08 0.07 0.07 0.06 0.05 0.05 0.04 0.03 0.03 0.03 0.02 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 (0.01) (0.01) (0.01) -0.01 (0.02) (0.02) -0.03 1 See slide 21
Slide 9: Deposit Balances
Deposit Balances Highlights $5,276,967 $5,355,169 $5,350,777 $5,192,810 $5,268,129 $5,037,193 $4,450,016 $4,274,247 ($ in thousands) TRUSTCO BANK CORP NY 9
Slide 10: Granular Deposit Base = Stability
Granular Deposit Base = Stability Current Deposit Mix as of June 30, 2024: 1. Average deposit account balance represent all regions. Derived from call report as of 6/30/2024. TRUSTCO BANK CORP NY 10
Slide 11: Cost of Funds
Cost of Funds TRST Peers 2.75 2.57 2.41 2.35 1.99 1.97 1.88 1.72 1.39 1.33 1.06 0.87 0.63 0.45 0.26 0.11 1 See slide 21 for a list of the companies that comprise TrustCo’s peer Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 group. TRUSTCO BANK CORP NY 11
Slide 12: Revenue
Total Revenue Growth $ in thousands 3.2% total revenue 16-year CAGR (2007 – 2023) $250,000 $200,000 Revenue $150,000 Steady Sustainable Growth $100,000 $50,000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Noninterest Income Net Interest Income TRUSTCO BANK
Slide 13: TrustCo Celebrated its 40 Year Listing Anniversary with NASDAQ
500 1000 1500 2000 2500 3000 3500 4000 0 12/1/1985 9/1/1986 6/1/1987 3/1/1988 12/1/1988 Source: Bloomberg 9/1/1989 6/1/1990 3/1/1991 12/1/1991 9/1/1992 6/1/1993 3/1/1994 12/1/1994 9/1/1995 6/1/1996 TRUSTCO BANK CORP NY 3/1/1997 12/1/1997 9/1/1998 6/1/1999 3/1/2000 12/1/2000 9/1/2001 6/1/2002 3/1/200
Slide 14: Efficiency Ratio
Efficiency Ratio 70% 68% 66.29% 66% 64% 62% 61.40% 60.92% 60% 58% 56.72% 56% FY 2023 YTD 2024 TRST Peer Average *Time period measured 12/31/2022 – 12/31/2023 and 12/31/2023 – 3/31/2024 Source: S&P Capital IQ 1 See slide 21 for a list of the companies that comprise TrustCo’s peer group. 2Efficiency r
Slide 15: Strong Capital Levels Compared to Peers
Strong Capital Levels Compared to Peers TrustCo Bank Corp NY TrustCo Bank Corp NY Capital City Bank Group, Inc. S&T Bancorp, Inc. Community Bank System, Inc. HarborOne Bancorp, Inc. Seacoast Banking Corporation of Florida Seacoast Banking Corporation of Florida Kearny Financial Corp. ConnectOne Banc
Slide 16: Reliable Dividends Paid to our Shareholders Since 1904
Reliable Dividends Paid to our Shareholders Since 1904 DIVIDEND GROWTH OVER THE LAST 10 YEARS $0.37 $0.36 $0.36 $0.35 $0.35 $0.34 $0.3406 $0.34 Average Dividend $0.33 Growth Rate Since $0.32 2018 = 3.01% $0.31 $0.30 Feb-14 Oct-15 Oct-20 Mar-16 Jun-17 Feb-19 Mar-21 Jun-22 Feb-24 Nov-17 Nov-22 Apr-18
Slide 17: Governance and Sustainability
Governance and Sustainability . TRUSTCO BANK CORP NY 17
Slide 18: TrustCo in the Community
TrustCo in the Community TRUSTCO BANK CORP NY 18
Slide 19: Appendix
Appendix TRUSTCO BANK CORP NY 19
Slide 20: Trustco Bank Executive Officer Biographies
Trustco Bank Executive Officer Biographies Chairman, President, and Chief Executive Officer Robert J. McCormick, Chairman, Age 61, Director of TrustCo and Trustco Bank from 2005 to present, chair from 2009 to 2010 and 2019 to present. President and Chief Executive Officer of TrustCo from 2004 to pre
Slide 21: Peer Group
Peer Group TRUSTCO BANK CORP NY 21
Slide 22: Forward-Looking Statements
Forward-Looking Statements All statements in this presentation that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate,
Slide 23: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial (dollars in thousands, except per share amounts) (Unaudited) As of Measures Reconciliation Tangible Equity to Tangible Assets June 30, 2024 Total Assets (GAAP) $6,106,644 Less: Intangible assets 553 The Securities and Exchange Commission (“SEC”) has adopted certain rules with resp