Trustco Bank Corp Ny · NASDAQ:TRST
Trustco Bank Corp Ny — Investor Presentation (June 2011)
36 slides from Trustco Bank Corp Ny's investor presentation, Jun 15, 2011
Slide 1: TrustCo Bank Corp NY
1 TrustCo Bank Corp NY NASDAQ: TRST June 2011
Slide 2: Forward Looking Statements
Forward Looking Statements Safe Harbor Regarding Forward-Looking Statements This presentation may contain forward-looking information about TrustCo Bank Corp NY (“the Company”) that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigat
Slide 3: Offering Terms
Issuer: TrustCo Bank Corp NY (the "Company“ or “TRST”) Ticker/Exchange: TRST / NASDAQ Global Select Market Offering: Follow-on Public Offering Type of Security: Common Stock Transaction Size: 13,600,000 shares, or approximately $75 million¹ Over-Allotment Option: 15% Use of Proceeds: General corpora
Slide 4: New York community-focused financial services company
ü New York community-focused financial services company with market presence in Florida, Massachusetts, New Jersey and Vermont ü Provides core banking products and services to retail customers and local businesses ü Strategy of building solid deposit franchise with low cost, core deposit base has le
Slide 5: Key Financial Attributes
(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 March 31, 2011 Note: Nationwide Peers reflects median value of group Source: SNL Financial, SEC Filings Key Financial Attributes
Slide 6: De novo expansion has driven the growth of TrustCo over the last decade
4 De novo expansion has driven the growth of TrustCo over the last decade 4 Over $4.0 billion in assets focused in three major geographic regions: o Upstate New York : TrustCo’s historical market area, centered around New York’s Capital Region o Downstate New York : Covers the lower and mid-Hudson R
Slide 7: Branch Franchise Overview
Source: Company Documents New York - 14 Counties, 84 Branches Massachusetts - 1 County, 4 Branches New Jersey - 1 County, 2 Branches Vermont - 1 County, 1 Branch Florida - 10 Counties, 43 Branches Branch Franchise Overview
Slide 8: Branch Franchise Details: Upstate and Downstate
Source: SNL Financial Upstate and Downstate New York Market Branches Florida Market Branches Branch Franchise Details
Slide 9: Strategy and Philosophy for Continued Growth
ü Deposit and Loan Portfolio Growth ü Superior Asset Quality ü Increasing Market Share in Newer Markets 4 Generated through our expanded branch network 4 Intense customer service focus 4 Simple, low cost products 4 Centralized portfolio lending process 4 Conservative lending criteria 4 History of st
Slide 10: Experienced Senior Management
Name Title/Function Years in Banking Years with TRST Robert J. McCormick President & Chief Executive Officer 26 16 Robert T. Cushing Executive VP & Chief Financial Officer 34 17 Scot R. Salvador Executive VP & Chief Banking Officer 21 16 Robert M. Leonard Senior Vice President & Corporate Secretary
Slide 11: Upstate New York market overview
(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 March 31, 2011 (2) Includes all publicly traded banks and thrifts nationwide as of March 31, 2011 Source: FDIC, SNL Financial, Bureau
Slide 12: TrustCo's Florida market
4 TrustCo’s Florida market covers the greater Orlando area in the eastern/central part of the state, with a second cluster of branches in Florida’s West Coast communities to the south of Tampa¹ 4 Economically Diverse Region o Medical City is a new 650 acre medical campus occupied by The University o
Slide 13: Consistent Balance Sheet Growth
Note: For source data, see page 35 in the Appendix Dollars in billions Source: SEC Filings CAGR: 5.4% Consistent Balance Sheet Growth
Slide 14: Superior ROAA Compared to Peers
Note: For source data, see page 35 in the Appendix (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 March 31, 2011 Source: SEC Filings; SNL Financial Superior ROAA Compared to Peers
Slide 15: Superior ROAE Compared to Peers
Note: For source data, see page 35 in the Appendix (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 March 31, 2011 Source: SEC Filings; SNL Financial Superior ROAE Compared to Peers
Slide 16: Superior Efficiency Ratio Compared to Peers
Note: For source data, see page 35 in the Appendix (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 March 31, 2011 Source: SEC Filings; SNL Financial Superior Efficiency Ratio Compar
Slide 17: Branch Growth Strategy
4 Since 2000, the Company has increased its network by 80 branches, bringing the total to 4 All new branches opened on a de novo basis with no stock or debt issuances 4 Expansion included growth in or into five states, with a focus on Florida and Downstate New York 4 We have built a platform for ste
Slide 18: Deposit Growth and Branch Expansion
Note: For source data, see page 35 in the Appendix Source: SEC Filing; Company Documents Total Branches NY Branches FL Branches CAGR: 5.7% Deposit Growth and Branch Expansion
Slide 19: Deposit Composition
March 31, 2011 Deposit Composition by Geography ü All deposits are gathered through branch network ü No brokered deposits ü No special pricing for jumbo CDs Total Deposits: $3.6 billion Avg. Cost of Int. Bearing Deposits: 0.82% Note: Data as of March 31, 2011 Source: Company Documents, SEC Filings D
Slide 20: Net Interest Margin & Cost of Interest Bearing Liabilities
Note: For source data, see page 35 in the Appendix (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 March 31, 2011 Source: Company Documents, SEC Filings, SNL Financial Net Interest
Slide 21: Deposit Market Share - Florida
*Note: Shaded institutions represent those institutions that have either failed or been acquired (1) As of June 30, 2010; Note: Includes deposit market share for banks and thrifts in the following counties in Florida where TrustCo has a branch presence: Charlotte, Hillsborough, Lake, Manatee, Orange
Slide 22: Loan Portfolio Composition
Loan Portfolio by Type Loan Portfolio by Location ü Portfolio centered on owner-occupied, single family loans ü Limited owner-occupied condominium lending (less than $10 million in total) ü No sub-prime lending Note: Data as of March 31, 2011 Source: Company Documents, SEC Filings Loan Portfolio Com
Slide 23: Geographic Detail of Loan Portfolio
Note: Data as of March 31, 2011 Source: Company Documents, SEC Filings Geographic Detail of Loan Portfolio
Slide 24: Detail of Loan Portfolio: 1-4 Family Composition
1-4 Family Composition ü The portfolio is comprised of loans that are fully-documented using comprehensive underwriting criteria without sole reliance on credit scores ü All applications are taken at branch locations by company employees ü Residential portfolio increased 4.5% year over year from Mar
Slide 25: Superior Credit Quality Compared to Peers
Note: For source data, see page 35 in the Appendix (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 March 31, 2011 Source: SEC Filings; SNL Financial Superior Credit Quality Compared
Slide 26: Credit Quality
ü TrustCo’s underwriting and lending practices have resulted in relatively low levels of non- performing assets and net charge-offs, as well as healthy reserve coverage, compared to peers Source: Company Documents, SEC Filings Credit Quality
Slide 27: Historical Credit Quality in Florida
(1) Includes Florida publicly traded banks and thrifts with assets between $2 billion and $10 billion; excludes TIBB as an outlier due to its recent recapitalization and write-down of loan portfolio Source: Company Documents, SEC Filings ü Recent trends in Florida delinquencies are encouraging ü Sup
Slide 28: Investment Portfolio and Rate Risk Management
As of March 31, 2011 Source: Company Documents, SEC Filings 4 Target a 60/40 split on loans to investments 4 Investment Securities o High level of liquidity in excess of $1 billion o Vast majority (86%) of securities are available for sale o High credit quality portfolio o No derivatives, trust pref
Slide 29: Pro Forma Capital Ratios
(1) Assumes $75 million in gross proceeds with a 5.00% underwriting spread and 20% risk weighting for use of new capital (2) Nationwide peers include publicly-traded banks and thrifts with assets between $2 billion and $10 billion (excludes mutuals and pending acquisition targets) as of March 31, 20
Slide 30: Why Invest in TrustCo Bank Corp NY?
Why Invest in TrustCo Bank Corp NY? 4 TrustCo has a 100 year history of profitability and dividend payouts 4 TrustCo has a geographically diverse branch network in many growth areas 4 Experienced management team with a history of strong operating results 4 Solid program of interest rate risk managem
Slide 31: TrustCo Awards
TrustCo Awards 4 “Banking’s Top Performers” - ABA Banking Journal o 12th out of 129 banks with over $3 billion of assets for 2010 4 #1 Home Lender in Capital Region 2010 - Capital District Business Review 4 Top 30 of “Top 150 Performers” - Bank Director Magazine , 2008-2010 4 Top 20 of “Top 100 Thri
Slide 32: Appendix
Appendix
Slide 33: YE TRUSTCO
YE TRUSTCO \ Bank Corp NY Asof Quarter Tnled As of Fiscal Year Faved December 31 3i312011 2007 2008 2008 2010 Conaaiited) ose (ash ant Epuvatente ssuiga0 sig60 susssse seas0 ss0ss8 Secures Avaiable forSale S788 676,002 10365 1601 Los 466 “Taing Secoties 46150 116306 ° ° ° Faldo Matos Secoriis 15,000
Slide 34: Historical Income Statement
Source: Company Documents, SEC Filings Historical Income Statement
Slide 35: Quarterly Data
Source: Company Documents, SEC Filings Quarterly Data
Slide 36: Tangible common equity non-GAAP measures
Tangible common equity and tangible common equity to tangible assets are non-GAAP financial measures derived from GAAP- based amounts. We calculate tangible common equity by excluding the balance of intangible assets from common stockholders’ equity. We calculate tangible common equity to tangible a
Trustco Bank Corp N Y — Investor Presentation (June 2011) on 6ix