TrustCo Bank Corp. NY (NASDAQ:TRST) Q2 2020 Earnings Conference Call - Final Transcript

Jul 22, 2020 • 09:00 am ET


TrustCo Bank Corp. NY (NASDAQ:TRST) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to TrustCo Bank Corp Earnings Call and Webcast. [Operator Instructions]

Before proceeding, we would like to mention that this presentation may contain forward-looking information about TrustCo Bank Corp NY that is intended to be covered by the safe harbor and forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors.

More detailed information about these and other risk factors can be found in our press release that proceeded this call and in the risk factors and forward-looking statements section of our annual report on Form 10-K and as updated by our quarterly reports on Form 10-Q. The statements are valid only as of the date hereof, and the company disclaims any obligation to update this information, except as may be required by applicable law.

Today's presentation contains non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures are included in our earnings press release, which is available under the Investor Relations tab of our website at Please also note that today's event is being recorded.

At this time, I would like to turn the conference over to Mr. Robert J. McCormick, Chairman, President, CEO. Please go ahead.

Robert J. McCormick

Thank you, and good morning, everyone. We had a pretty solid second quarter at the bank, especially in light of the events that are happening around us. First and foremost, we took being essential very seriously, which meant to us being there for our customers when they need us. Much of the burden for this fell to the staff in our branches, their performance has been amazing through this pandemic. Our back office staff, especially loan departments, has been great, too.

We're very proud of how the vast majority of staff members have handled our business during these times. Michael Ozimek and Scot Salvador are on the call today. So let me hit the highlights, then they can give a lot of detail, and we can answer any questions you may have. Our net income was roughly $11.3 million for the quarter. This is down, but putting it in a perspective, it is a very solid number. Our net interest expense was down to about $6.9 million for the quarter.

Our interest income on our loan portfolio has been essentially flat. Where we lost the ground was the interest we earn on the investment portfolio, especially interest on Fed funds. Tied to our deposit growth, which has been fantastic, we have posted nice growth in all categories, except time accounts. The stimulus funds have also been a lot stickier than we would have expected, probably driven by the nature of our service areas.

On the loan side, growth has been driven mostly by residential loans, we were active with PPP loans. We also had our share of payment deferral request on both the residential and commercial side. We put extra funds