TrustCo Bank Corp. NY (NASDAQ:TRST) Q1 2018 Earnings Conference Call Transcript

Apr 24, 2018 • 09:00 am ET

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TrustCo Bank Corp. NY (NASDAQ:TRST) Q1 2018 Earnings Conference Call Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. (Operator Instructions) And our first question comes from Alex Twerdahl with Sandler O'Neill.

Analyst
Alex Twerdahl

Hey, good morning guys.

Executive
Robert J. McCormick

Good morning, Alex.

Executive
Michael Ozimek

Hey, Alex.

Executive
Scot Salvador

Good morning, Alex.

Analyst
Alex Twerdahl

First I just want to drill a little bit more on what you guys are seeing on deposits and clearly the non-time deposits you've been able to keep the rates very low there. But on the time deposits ticked up a little bit during the quarter, is that due to some promotions or kind of what's driving that, extended duration and then in the past, I think you've provided some numbers on the amount of time deposits that mature during a specific quarter and the year. And I was wondering if you can provide those numbers to us.

Executive
Robert J. McCormick

Now we have been more active in that area. Alex, we think if we can get the money a little bit earlier in the year, we will be better off long term. I think the rates will only be higher towards the end of the year. We haven't been certainly leading the market. We tried to never do that. But we've, kind of, just been staying with the market, keeping what we have and looking at people who have multiple accounts with us as well, and trying to drive a more from a relationship perspective. As far as the pending maturities or what's coming up over the next short period of time...

Executive
Michael Ozimek

I mean the average deposits or the CDs that are maturing Alex, most of them turn over within the next -- other -- a significant portion turnover within 12 to 13 months, that's the average that we have.

Analyst
Alex Twerdahl

Okay. So it's really extending the duration on the securities portfolio is what's driving that a little bit higher.

Executive
Robert J. McCormick

Yes.

Analyst
Alex Twerdahl

Okay. And then, I wanted to just to ask a question about the reserve, which I'm -- we know we've discussed a lot in the past. But given the fact that charge off just 90 basis points seem like they're pretty much under control. Net non-performing loans have been kind of at a level where don't probably expect too much fluctuation from here on out. The reserve at 121 (ph), it seems to me like it maybe is a little bit elevated still.

Should we expect that to based on historical laws trends and things like that? Would it be fair to expect that to come down a little bit over the next couple of quarters?

Executive
Robert J. McCormick

Yes. There's a couple of things that come into play. The amount of provision that we put on is definitely dependent upon the growth in our loan portfolio. So as that starts to drive up, that starts to require more provision, just how it works. However, we do expect that if the non-performers remain at the level of where they are, the net charge-offs really stay low where they are. And we -- that's what we expect going forward. We would expect that to kind