Trustco Bank Corp Ny · NASDAQ:TRST
Trustco Bank Corp Ny — Sandler O'Neill + Partners East Coast Financial Services Conference 2012
27 slides from Trustco Bank Corp Ny's conference presentation, Nov 15, 2012
Slide 1: Sandler O'Neill + Partners East Coast Financial Services Conference
Robert J. McCormick, President and Chief Executive Officer Robert T. Cushing, Executive Vice President and Chief Financial Officer Scot R. Salvador, Executive Vice President and Chief Banking Officer Sandler O’Neill + Partners East Coast Financial Services Conference November 15, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements * Note: Data in this presentation was obtained from SNL Financial and from the Company’s SEC filings. This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements
Slide 3: TrustCo Bank Corp NY
* TrustCo Bank Corp NY New York community-focused financial services company with additional market presence in Florida, Massachusetts, New Jersey and Vermont Provides core banking products and services to local businesses and retail customers Strategy of building solid deposit franchise with low co
Slide 4: TrustCo vs. Peers
TrustCo vs. Peers Peer Group includes all public owned banking institutions covered by SNL Financial with assets of $2 to $10 billion as of September 30, 2012, except as noted. Peer group members have not all filed Q3/12 information. Ratios are as calculated by SNL and may differ from TrustCo calcul
Slide 5: Branch Franchise Overview
* Branch Franchise Overview New York – 14 Counties, 86 Branches Massachusetts – 1 County, 4 Branches New Jersey – 1 County, 2 Branches Vermont – 1 County, 1 Branch Florida – 12 Counties, 45 Branches As of September 30, 2012
Slide 6: New York Region
New York Region *
Slide 7: Florida Region
Florida Region *
Slide 8: Deposit Growth and Branch Expansion
* Deposit Growth and Branch Expansion Source: SEC Filing; Company Documents; SNL Financial
Slide 9: Branch Growth Strategy
* Branch Growth Strategy Since 2000, the Company has increased its network by 84 branches, bringing the total to 138 All new branches opened on a de novo basis Expansion included growth in five states, with a focus on Florida and Downstate New York We have built a platform for steady and conservativ
Slide 10: Number of Branches & Average Size
Number of Branches & Average Size *
Slide 11: Deposit Growth ($000)
Deposit Growth ($000) * Source: SEC Filing; Company Documents; SNL Financial
Slide 12: Deposit Market Share – Florida
* Deposit Market Share – Florida *Note: Shaded institutions represent those institutions that have either failed or been acquired (1) As of June 30, 2012; Note: Includes deposit market share for banks and thrifts in the following counties in Florida where TrustCo has a branch presence: Brevard, Char
Slide 13: Strategy and Philosophy for Continued Growth
* Strategy and Philosophy for Continued Growth Deposit and Loan Portfolio Growth Superior Asset Quality Increasing Market Share in New Markets Generated through our expanded branch network Intense customer service focus Simple, low cost products Centralized portfolio lending process Conservative len
Slide 14: Loan Growth ($000)
Loan Growth ($000) * Source: SEC Filing; Company Documents; SNL Financial
Slide 15: Detail of Loan Portfolio
* Detail of Loan Portfolio 1-4 Family Composition September 30, 2012 The portfolio is comprised of loans that are fully-documented using comprehensive underwriting criteria without sole reliance on credit scores All originations are taken at branch locations by company employees Residential portfoli
Slide 16: Superior Credit Quality Compared to Peers: NPAs / Assets
* Superior Credit Quality Compared to Peers NPAs / Assets (%) (1) Nationwide peers include publicly-traded banks and thrifts with assets between $2 billion and $10 billion (excludes mutuals and pending acquisition targets) as of September 30, 2012 Source: SEC Filings; SNL Financial
Slide 17: Superior Credit Quality Compared to Peers: Nonperforming Loans / Loans
Superior Credit Quality Compared to Peers Nonperforming Loans / Loans (%) * (1) Nationwide peers include publicly-traded banks and thrifts with assets between $2 billion and $10 billion (excludes mutuals and pending acquisition targets) as of September 30, 2012 Source: SEC Filings; SNL Financial
Slide 18: Superior Credit Quality Compared to Peers: Short-term Delinquencies
Superior Credit Quality Compared to Peers Short-term (30-89 Day) Delinquencies (%) * (1) Nationwide peers include publicly-traded banks and thrifts with assets between $2 billion and $10 billion (excludes mutuals and pending acquisition targets) as of September 30, 2012 Source: SEC Filings; SNL Fina
Slide 19: Superior Efficiency Ratio Compared to Peers
* Superior Efficiency Ratio Compared to Peers (1) Nationwide peers include publicly-traded banks and thrifts with assets between $2 billion and $10 billion (excludes mutuals and pending acquisition targets) as of September 30, 2012 Source: SEC Filings; SNL Financial
Slide 20: Investment Portfolio and Interest Rate Risk
* Investment Portfolio and Interest Rate Risk Strive to achieve a 60/40 split on loans to investments Investment Securities High level of liquidity in excess of $1 billion Vast majority of securities are available for sale High credit quality portfolio No derivatives, trust preferred or exotic instr
Slide 21: Investment Strategy and Composition
* Investment Strategy and Composition 2013 plan consistent with prior years Focus on short-term investments (1-5 average life) Primarily investing in government sponsored agency and mortgage backed securities Continue to evaluate investing in other investment classes Investment Composition September
Slide 22: Bank Capital Ratios as of September 30, 2012
* Bank Capital Ratios as of September 30, 2012 (1) Nationwide peers include publicly-traded banks and thrifts with assets between $2 billion and $10 billion (excludes mutuals and pending acquisition targets) as of September 30, 2012. RBC = Risk Based Capital. Source: SEC Filings; SNL Financial
Slide 23: Supplemental Financial Information
* Supplemental Financial Information
Slide 24: Historical Balance Sheet
* Historical Balance Sheet Source: Company Documents, SEC Filings, SNL Financial 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 9/30/2012 ASSETS Total cash and cash equivalents 344,920 249,604 145,894 444,250 532,943 442,644 Trading securities 465,151 116,326 - - - - Securities available for
Slide 25: Historical Income Statement
* Historical Income Statement Source: Company Documents, SEC Filings, SNL Financial 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FQ3 YTD Consolidated Statements of Income Total interest income 189,418 170,919 161,360 162,123 160,748 117,351 Total interest expense 92,984 74,056 49,451 34,998 26,244 1
Slide 26: Credit Quality
* Credit Quality Source: Company Documents, SEC Filings and SNL Financial. Ratios are as calculated by SNL and may differ from TrustCo calculations contained in other documents. 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FQ3 YTD Asset Quality ($000) Asset Quality ($000) Asset Quality ($000) Nonacc
Slide 27: Non-GAAP Financial Measures
* Non-GAAP Financial Measures The efficiency ratio is a non-GAAP financial measures derived from GAAP-based amounts. We calculate the efficiency ratio by dividing recurring operating expense by recurring operating revenue . We believe that this is consistent with the treatment by independent parties