|
|
14-1630287
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of exchange on which registered)
|
Common Stock, $1.00 par value
|
TRST
|
The Nasdaq Global Select Market
|
Large Accelerated Filer ☒
|
Accelerated Filer ☐
|
Non-Accelerated Filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Description
|
Page
|
||
PART I
|
|||
Item 1
|
3 | ||
Item 1A
|
18 | ||
Item 1B
|
29 | ||
Item 2
|
29 | ||
Item 3
|
29 | ||
Item 4
|
29 | ||
PART II
|
|||
Item 5
|
31 | ||
Item 6
|
32 | ||
Item 7
|
32 | ||
Item 7A
|
32 | ||
Item 8
|
32 | ||
Item 9
|
32 | ||
Item 9A
|
32 | ||
Item 9B
|
33 | ||
Item 9C
|
33 | ||
PART III
|
|||
Item 10
|
33 | ||
Item 11
|
33 | ||
Item 12
|
33 | ||
Item 13
|
33 | ||
Item 14
|
33 | ||
PART IV
|
|||
Item 15
|
34 | ||
Item 16
|
38 | ||
34 | |||
39 |
Item 1. |
Business
|
•
|
4.5% CET1 to risk-weighted assets;
|
|
•
|
6.0% Tier 1 capital to risk-weighted assets;
|
|
•
|
8.0% Total capital to risk-weighted assets; and
|
|
•
|
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (the “leverage ratio”).
|
•
|
is secured by property that is owner-occupied or rented,
|
|
•
|
is made in accordance with “prudent underwriting standards,” including loan-to-value ratios,
|
|
•
|
is not 90 days or more past due or in nonaccrual status, and
|
|
•
|
is not restructured or modified.
|
• |
Provide employees incentives that appropriately balance risk and reward;
|
• |
Be compatible with effective controls and risk management; and
|
• |
Be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.
|
Disclosure
|
Page Number in Annual
Report to Shareholders
|
|
I. Distribution of assets, liabilities, and shareholders’ equity; interest rates and interest differential
|
||
A. Average balance sheets
|
16
|
|
B. Interest income/expense and resulting yield or rate on average interest-earning assets and interest‑bearing liabilities
|
16
|
|
C. Rate/volume variances
|
17
|
|
II. Investments in debt securities
|
||
A. Maturity schedule and weighted average yield
|
13
|
|
III. Loan Portfolio
|
||
A. Maturity schedule
|
10
|
|
IV. Allowance for Credit Losses
|
||
A. Credit ratios - Factors driving material changes in credit ratios or related components
|
19, 20, 21
|
|
B. Allocation of the allowance for credit losses
|
22
|
|
V. Deposits
|
||
A. Average balances and rates
|
17
|
|
B. Uninsured and time deposits over $250,000
|
17
|
Item 1A. |
Risk Factors
|
Item 1B |
Unresolved Staff Comments
|
Item 2. |
Properties
|
Item 3. |
Legal Proceedings
|
Item 4. |
Mine Safety Disclosures
|
Name, Age and
Position
With Trustco
|
Principal Occupations Or Employment Since January 1, 2008
|
Year First
Became
Executive of
TrustCo
|
||
Robert J. McCormick,
Age 60,
Chairman, President and Chief Executive Officer
|
Chairman, President and Chief Executive Officer of TrustCo from January 2009 to December 2010, President and Chief Executive Officer of TrustCo since January 2004, Executive Officer of TrustCo since 2001 and President and Chief
Executive Officer of Trustco Bank since November 2002. Chairman of TrustCo and Trustco Bank from November 2008 to December 2010. Director of TrustCo and Trustco Bank since 2005. Joined Trustco Bank in 1995.
|
2001
|
Scot R. Salvador,
Age 56,
Executive Vice President Commercial Banking
|
Executive Vice President of TrustCo and Trustco Bank since January 2004. Executive Officer of TrustCo and Trustco Bank since 2004. Joined Trustco Bank in 1995.
|
2004
|
||
Robert M. Leonard,
Age 60,
Executive Vice President Corporate Services and Risk
|
Executive Vice President of TrustCo and Trustco Bank from 2013 to present. Senior Vice President of TrustCo and Trustco Bank from 2010 to 2013. Secretary of TrustCo and Trustco Bank from 2003 to 2006 and
2009 to 2016. Assistant Secretary of TrustCo and Trustco Bank from 2006 to 2009. Executive Officer of TrustCo and Trustco Bank from 2003 to present. Joined Trustco Bank in 1986.
|
2003
|
||
Michael M. Ozimek
Age 48,
Executive Vice President and Chief Financial Officer
|
Executive Vice President and Chief Financial Officer, TrustCo and Trustco Bank from 2018 to present. Senior Vice President and Chief Financial Officer of TrustCo and Trustco Bank from 2014 to 2018. Executive Officer of TrustCo and
Trustco Bank from 2014 to present. Joined TrustCo and Trustco Bank in 2002.
|
2014
|
||
Eric W. Schreck
Age 56,
Executive Vice President
and Treasurer
|
Executive Vice President and Florida Regional President of Trustco Bank from 2021 to present. Senior Vice President and Florida Regional President of Trustco Bank from 2009 to 2020. Treasurer of TrustCo from 2010 to present. Executive
Officer of TrustCo and Trustco Bank from 2010 to present. Joined Trustco Bank in 1989.
|
2010
|
||
Michael Hall
Age 58,
General Counsel and Corporate Secretary
|
General Counsel and Corporate Secretary of TrustCo and Trustco Bank from 2018 to present. Vice President and Counsel of TrustCo and Trustco Bank from 2015 to 2018. Assistant Secretary of TrustCo and Trustco Bank for 2016. Executive
Officer and Secretary of TrustCo and Trustco Bank from 2017 to present. Attorney with McNamee, Lochner, Titus & William, P.C. from 1992 to 2015. Joined TrustCo and Trustco Bank in 2015.
|
2016
|
Kevin M. Curley
Age 56,
Executive Vice President Retail Banking
|
Executive Vice President Retail Banking of TrustCo and Trustco Bank from December 2018 to present. Joined Trustco Bank in 1990.
|
2018
|
Item 5. |
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Period
|
(a)
Total
Number
of Shares
Purchased
|
(b)
Average
Price
Paid Per
Share
|
(c)
Total
Number of
Shares
Purchased
as Part of
Publicly
Announced
Plans or
Programs
|
(d)
Maximum
Number
of Shares
that May
Yet
Be
Purchased
Under
the Plans or
Programs (1)
|
||||||||||||
October 1 to October 31, 2022
|
-
|
$
|
-
|
-
|
32,786
|
|||||||||||
November 1 to November 30, 2022
|
-
|
$
|
-
|
-
|
32,786
|
|||||||||||
December 1 to December 31, 2022
|
32,786
|
$
|
38.17
|
32,786
|
-
|
|||||||||||
Total
|
32,786
|
$
|
38.17
|
32,786
|
-
|
(1) |
On March 9, 2022 the Company’s Board of Directors authorized another share repurchase program of up to 200,000 shares, or approximately 1% of its currently outstanding common stock. During the three months ended December 31, 2022, the
Company repurchased a total of 32,786 shares at an average price per share of $38.17, for a total of $1.2 million under its Board authorized share repurchase program. All 200,000 shares under the current authorization had been repurchased
as of December 31, 2022.
|
Item 6. |
[Removed and reserved]
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk
|
Item 8. |
Financial Statements and Supplementary Data
|
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A. |
Controls and Procedures
|
Item 9B. |
Other Information
|
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
|
Item 10. |
Directors, Executive Officers and Corporate Governance
|
Item 11. |
Executive Compensation
|
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13. |
Certain Relationships, Related Transactions and Director Independence
|
Item 14. |
Principal Accountant Fees and Services
|
Item 15. |
Exhibits, Financial Statement Schedules
|
Exhibit No.
|
Description
|
Amended and Restated Certificate of Incorporation of TrustCo Bank Corp NY, as amended incorporated by reference to Exhibit 3.1 to TrustCo Bank Corp NY’s Quarterly
Report on Form 10-Q, filed August 5, 2021.
|
|
Amended and Restated Bylaws of TrustCo Bank Corp NY, dated May 23, 2019, incorporated by reference to Exhibit 3.2 to TrustCo Bank Corp NY’s Quarterly Report on Form
10-Q, filed August 8, 2019.
|
|
Description of Capital Stock, incorporated by reference to Exhibit 4(a) to TrustCo Bank Corp NY’s Annual Report on Form 10-K, filed February 25, 2022.
|
|
Amended and Restated Trust For Deferred Benefits Provided under Employment Agreements of Trustco Bank, National Association and TrustCo Bank Corp NY, dated September 18, 2001 incorporated by reference to
Exhibit 10(b) to TrustCo Bank Corp NY’s Annual Report on Form 10-K, for the year ended December 31, 2001.
|
Amended and Restated Trust Under Non-Qualified Deferred Compensation Plans of Trustco Bank, National Association and TrustCo Bank Corp NY, dated September 18, 2001, incorporated by reference to, Exhibit
10(c) to TrustCo Bank Corp NY’s Annual Report on Form 10-K, for the year ended December 31, 2001.
|
|
Amended and Restated Trustco Bank and TrustCo Bank Corp NY Supplemental Retirement Plan, effective as of January 1, 2008, incorporated by reference to Exhibit 99.6 to TrustCo Bank Corp NY’s Current Report on Form 8-K filed December 22, 2008.
|
|
Second Amended and Restated TrustCo Bank Corp NY Performance Bonus Plan, effective as of January 1, 2008, incorporated by reference to Exhibit 99.5 to TrustCo Bank Corp NY’s
Current Report on Form 8-K filed December 22, 2008.
|
|
Amendment No. 1 to Second Amended and Restated TrustCo Bank Corp NY Performance Bonus Plan, effective January 1, 2010, incorporated by reference to Exhibit 99(e) to TrustCo Bank Corp NY’s Current Report on Form 8-K filed January 19, 2010.
|
|
Form of 2008 Amended and Restated Employment Agreement between Trustco Bank, TrustCo Bank Corp NY and Robert J. McCormick, Robert T. Cushing and Scot R. Salvador, effective as of January 1, 2008,
incorporated by reference to Exhibit 99.8 to TrustCo Bank Corp NY’s Current Report on Form 8-K filed December 22, 2008.
|
|
Second Amended and Restated TrustCo Bank Corp NY Directors Performance Bonus Plan, effective as of January 1, 2008, incorporated by reference to Exhibit 99.4 to TrustCo Bank Corp NY’s Current Report on Form 8-K filed December 22, 2008.
|
|
Amendment No. 1, Second Amended and Restated TrustCo Bank Corp NY Directors Performance Bonus Plan, effective January 1, 2010, incorporated by reference to Exhibit 99(f) to TrustCo Bank Corp NY’s Current Report on Form 8-K filed January 19, 2010.
|
|
Service Bureau Processing Agreement by and between Fidelity Information Services, Inc. and TrustCo Bank Corp NY dated March 3, 2004 incorporated by reference to Exhibit 10(b) to TrustCo Bank Corp NY’s Quarterly Report on Form 10-Q, for the quarter ended March 31, 2004.
|
|
Agreement between Fiserv Solutions, Inc. and Trustco Bank, National Association, dated November 14, 2001 incorporated by reference to Exhibit 10(o) to TrustCo Bank Corp NY’s Annual Report on Form 10-K, for
the year ended December 31, 2001.
|
|
Restatement of Trustco Bank Senior Incentive Plan, effective as of January 1, 2008, incorporated by reference to Exhibit 99.9 to TrustCo Bank Corp NY’s Current Report on Form 8-K filed December
22, 2008.
|
|
Form of Amendments to 2008 Amended and Restated Employment Agreement between Trustco Bank, TrustCo Bank Corp NY and each of Robert J. McCormick, Robert T. Cushing and Scot R. Salvador, incorporated by
reference to Exhibit 99.1 to TrustCo Bank Corp NY’s Current Report on Form 8-K filed March 17, 2009.
|
|
First Amendment to Restatement of Trustco Bank Senior Incentive Plan, incorporated by reference to Exhibit 99.2 to TrustCo Bank Corp NY’s Current Report on Form 8-K
filed November 18, 2009.
|
|
Amended and Restated TrustCo Bank Corp NY 2010 Equity Incentive Plan dated as of March 21, 2017, incorporated by reference to Exhibit 10(a) to TrustCo Bank Corp NY’s Current Report on Form 8-K filed March
24, 2017.
|
Amended and Restated 2010 Directors Equity Incentive Plan dated March 17, 2015, incorporated by reference to Exhibit 10(b) to TrustCo Bank Corp NY’s Current Report
on Form 8-K filed March 23, 2015.
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and Contained in Exhibit 101)
|
*
|
Management contract or compensatory plan or arrangement.
|
**
|
Filed herewith.
|
Item 16. |
Form 10-K Summary
|
TrustCo Bank Corp NY
|
|||
Date: March 1, 2023
|
By:
|
/s/ Michael M. Ozimek
|
|
Michael M. Ozimek
|
|||
Executive Vice President and Chief Financial Officer
|
Name and Signature
|
Title
|
Date
|
||
/s/ Robert J. McCormick
|
||||
Robert J. McCormick
|
Chairman, President and Chief Executive Officer
(principal executive officer)
|
March 1, 2023
|
||
/s/ Michael M. Ozimek
|
||||
Michael M. Ozimek
|
Executive Vice President and Chief Financial Officer
(principal financial and accounting officer)
|
March 1, 2023
|
||
*
|
||||
Dennis A. DeGennaro
|
Lead Independent Director
|
March 1, 2023
|
||
*
|
||||
Brian C. Flynn
|
Director
|
March 1, 2023
|
||
*
|
||||
Lisa M. Lucarelli
|
Director
|
March 1, 2023
|
||
*
|
||||
Thomas O. Maggs
|
Director
|
March 1, 2023
|
||
*
|
||||
Dr. Anthony J. Marinello
|
Director
|
March 1, 2023
|
||
*
|
||||
Curtis N. Powell
|
Director
|
March 1, 2023
|
||
*
|
||||
Frank B. Silverman
|
Director
|
March 1, 2023
|
||
*
|
||||
Alejandro M. Sanchez
|
Director
|
March 1, 2023
|
*
|
||||
Frank B. Silverman
|
Director
|
March 1, 2023
|
* By:
|
/s/ Robert M. Leonard
|
Robert M. Leonard, as Agent
|
|
Pursuant to Power of Attorney
|
Participant
|
|
Grant Date
|
November 15, 2022
|
Number of Restricted Stock Units:
|
|
Period of Restriction (Lapse Date):
|
November 15, 2023
|
TrustCo Bank Corp NY
|
|||
By:
|
|||
Robert J. McCormick
|
|||
Chairman, President and CEO
|
|||
Accepted and agreed to:
|
|||
Name:
|
|||
Date:
|
(dollars in thousands, except per share data)
|
Years ended December 31,
|
|||||||||||
2022
|
2021
|
Percent Change
|
||||||||||
Income:
|
||||||||||||
Net interest income
|
$
|
180,135
|
$
|
160,408
|
12.30
|
|||||||
Net Income
|
75,234
|
61,519
|
22.29
|
|||||||||
Per Share:
|
||||||||||||
Basic earnings
|
3.93
|
3.19
|
23.20
|
|||||||||
Diluted earnings
|
3.93
|
3.19
|
23.20
|
|||||||||
Book value at period end
|
31.54
|
31.28
|
0.83
|
|||||||||
Average Balances:
|
||||||||||||
Assets
|
6,159,004
|
6,075,481
|
1.37
|
|||||||||
Loans, net
|
4,551,281
|
4,336,834
|
4.94
|
|||||||||
Deposits
|
5,302,439
|
5,188,347
|
2.20
|
|||||||||
Shareholders' equity
|
597,086
|
579,923
|
2.96
|
|||||||||
Financial Ratios:
|
||||||||||||
Return on average assets
|
1.22
|
%
|
1.01
|
%
|
20.79
|
|||||||
Return on average equity
|
12.60
|
10.61
|
18.76
|
|||||||||
Consolidated tier 1 capital to:
|
||||||||||||
Total assets (leverage capital ratio)
|
10.39
|
9.61
|
8.12
|
|||||||||
Risk-adjusted assets
|
18.93
|
19.54
|
(3.12
|
)
|
||||||||
Common equity tier 1 capital ratio
|
18.93
|
19.54
|
(3.12
|
)
|
||||||||
Total capital to risk-adjusted assets
|
20.18
|
20.79
|
(2.93
|
)
|
||||||||
Allowance for credit losses on loans to nonperforming loans
|
2.63
|
x
|
2.36
|
x
|
11.44
|
|||||||
Efficiency ratio*
|
50.22
|
%
|
56.90
|
%
|
(11.74
|
)
|
||||||
Dividend Payout ratio
|
35.86
|
42.95
|
(16.51
|
)
|
|
|
Range of Stock
Price |
||||||||||||||||||||||
Basic
Earnings |
Diluted
Earnings |
Cash
Dividend |
BookValue
|
High
|
Low
|
|||||||||||||||||||
2022
|
||||||||||||||||||||||||
First quarter
|
$
|
0.89
|
$
|
0.89
|
$
|
0.3500
|
$
|
30.85
|
$
|
35.70
|
$
|
31.93
|
||||||||||||
Second quarter
|
0.93
|
0.93
|
0.3500
|
31.06
|
32.75
|
29.85
|
||||||||||||||||||
Third quarter
|
1.01
|
1.01
|
0.3500
|
30.89
|
36.09
|
30.39
|
||||||||||||||||||
Fourth quarter
|
1.10
|
1.10
|
0.3600
|
31.54
|
39.16
|
31.83
|
||||||||||||||||||
2021 (1)
|
||||||||||||||||||||||||
First quarter
|
$
|
0.73
|
$
|
0.73
|
$
|
0.3406
|
$
|
29.60
|
$
|
39.08
|
$
|
31.10
|
||||||||||||
Second quarter
|
0.75
|
0.75
|
0.3406
|
30.00
|
39.13
|
34.10
|
||||||||||||||||||
Third quarter
|
0.87
|
0.87
|
0.3406
|
30.53
|
34.52
|
29.95
|
||||||||||||||||||
Fourth quarter
|
0.85
|
0.85
|
0.3500
|
31.28
|
34.80
|
32.00
|
(1)
|
All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.
|
1
|
|
|
|
3
|
|
|
|
4-32
|
|
|
|
33-35
|
|
|
|
36
|
|
|
|
Consolidated Financial Statements and Notes
|
37-99
|
|
|
37
|
|
40 |
|
41 |
|
42 |
|
43 |
|
44 |
|
45 |
|
|
|
99-104
|
|
|
|
105-106
|
|
|
|
107-108
|
|
Share Price Information |
109 |
•
|
Net income after taxes was up 22.3% or $13.7 million to $75.2 million as compared to the prior year;
|
•
|
Period-end loans were up $294 million for 2022 compared to the prior year;
|
•
|
Net interest income was up 12.3% or $19.7 million as compared to the prior year;
|
•
|
Nonperforming loans declined $1.3 million or 6.7% to $17.5 million from year-end 2021 to year-end 2022;
|
•
|
At 50.22%, the efficiency ratio improved 12% over 2021 (see Non-GAAP Financial Measures Reconciliation), and;
|
•
|
The regulatory capital levels of both the Company and the Bank continued to remain very strong at December 31, 2022, and the Bank continues to meet the definition of “well capitalized” for regulatory
purposes.
|
•
|
An increase of $19.7 million in net interest income from 2021 to 2022 primarily as a result of the increased Federal Funds rate and loan growth;
|
•
|
a decrease in the credit for credit losses on loans of $5.1 million;
|
•
|
an increase in non-interest income of $1.3 million; and
|
•
|
a decrease in non-interest expense of $1.3 million.
|
•
|
Tier 1 risk-based capital ratio of 18.93% for 2022 and 19.54% for 2021, compared to medians of 12.22% in 2022 and 12.79% in 2021 for a peer group comprised of all publicly traded banks and thrifts
tracked by S&P Global Market Intelligence with assets of $2 billion to $10 billion, and
|
•
|
an efficiency ratio, as calculated by S&P Global Market Intelligence, of 50.22% for 2022 and 56.90% for 2021, compared to the peer group medians of 56.32% in 2022 and 56.70% in 2021.
|
3 Month T
Bill (BEY)
|
2 Year T
Note
|
5 Year T
Note
|
10 Year T
Note
|
10 Year -
2 Year
|
||||||||||||||||
Yield(%)
|
Yield(%)
|
Yield(%)
|
Yield(%)
|
Spread(%)
|
||||||||||||||||
2022
|
||||||||||||||||||||
Beginning of Year
|
0.06
|
0.73
|
1.26
|
1.52
|
0.79
|
|||||||||||||||
Peak
|
4.46
|
4.72
|
4.45
|
4.25
|
0.89
|
|||||||||||||||
Trough
|
0.08
|
0.77
|
1.37
|
1.63
|
(0.84
|
)
|
||||||||||||||
End of Year
|
4.42
|
4.41
|
3.99
|
3.88
|
(0.53
|
)
|
||||||||||||||
Average
|
2.09
|
2.99
|
3.00
|
2.95
|
(0.04
|
)
|
||||||||||||||
Median
|
1.83
|
3.03
|
3.00
|
2.96
|
(0.01
|
)
|
||||||||||||||
2021
|
||||||||||||||||||||
Beginning of Year
|
0.09
|
0.13
|
0.36
|
0.93
|
0.80
|
|||||||||||||||
Peak
|
0.09
|
0.76
|
1.34
|
1.74
|
1.59
|
|||||||||||||||
Trough
|
0.01
|
0.09
|
0.36
|
0.93
|
0.72
|
|||||||||||||||
End of Year
|
0.06
|
0.73
|
1.26
|
1.52
|
0.79
|
|||||||||||||||
Average
|
0.04
|
0.27
|
0.86
|
1.45
|
1.18
|
|||||||||||||||
Median
|
0.05
|
0.20
|
0.83
|
1.48
|
1.14
|
(dollars in thousands)
|
2022
|
2021
|
Components of
|
|||||||||||||||||||||||||||||
vs.
|
vs.
|
Total Earning Assets
|
||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
2021
|
2020
|
2022
|
2021
|
2020
|
|||||||||||||||||||||||||
Loans, net
|
$
|
4,551,281
|
$
|
4,336,834
|
$
|
4,163,399
|
$
|
214,447
|
$
|
173,435
|
75.7
|
%
|
73.2
|
%
|
77.2
|
|||||||||||||||||
Securities available for sale (1):
|
||||||||||||||||||||||||||||||||
U.S. government sponsored enterprises
|
89,557
|
63,743
|
38,508
|
25,814
|
25,235
|
1.5
|
1.1
|
0.7
|
||||||||||||||||||||||||
State and political subdivisions
|
41
|
48
|
111
|
(7
|
)
|
(63
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||
Mortgage-backed securities and
|
||||||||||||||||||||||||||||||||
collateralized mortgage obligations-
|
||||||||||||||||||||||||||||||||
residential
|
284,901
|
308,777
|
333,093
|
(23,876
|
)
|
(24,316
|
)
|
4.7
|
5.2
|
6.2
|
||||||||||||||||||||||
Corporate bonds
|
78,266
|
53,699
|
50,982
|
24,567
|
2,717
|
1.3
|
0.9
|
0.9
|
||||||||||||||||||||||||
Small Business Administration-guaranteed
|
||||||||||||||||||||||||||||||||
participation securities
|
26,679
|
35,723
|
44,379
|
(9,044
|
)
|
(8,656
|
)
|
0.4
|
0.6
|
0.8
|
||||||||||||||||||||||
Other
|
686
|
685
|
686
|
1
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||
Total securities available for sale
|
480,130
|
462,675
|
467,759
|
17,455
|
(5,084
|
)
|
7.9
|
7.8
|
8.6
|
|||||||||||||||||||||||
Held-to-maturity securities:
|
||||||||||||||||||||||||||||||||
Mortgage-backed securities and
|
||||||||||||||||||||||||||||||||
collateralized mortgage obligations-residential
|
8,647
|
11,733
|
16,376
|
(3,086
|
)
|
(4,643
|
)
|
0.1
|
0.2
|
0.3
|
||||||||||||||||||||||
Total held-to-maturity securities
|
8,647
|
11,733
|
16,376
|
(3,086
|
)
|
(4,643
|
)
|
0.1
|
0.2
|
0.3
|
||||||||||||||||||||||
Federal Reserve Bank and Federal Home
|
||||||||||||||||||||||||||||||||
Loan Bank stock
|
5,749
|
5,578
|
7,381
|
171
|
(1,803
|
)
|
0.1
|
0.1
|
0.1
|
|||||||||||||||||||||||
Federal funds sold and other short-term
|
||||||||||||||||||||||||||||||||
investments
|
969,043
|
1,111,257
|
748,085
|
(142,214
|
)
|
363,172
|
16.2
|
18.7
|
13.8
|
|||||||||||||||||||||||
Total earning assets
|
$
|
6,014,850
|
$
|
5,928,077
|
$
|
5,403,000
|
$
|
86,773
|
$
|
525,077
|
100.0
|
%
|
100.0
|
%
|
100.0
|
(dollars in thousands)
|
As of December 31,
|
|||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
Commercial
|
$
|
208,737
|
4.4
|
%
|
$
|
180,814
|
4.1
|
%
|
$
|
198,328
|
4.7
|
% |
||||||||||||
Real estate - construction
|
36,351
|
0.8
|
37,279
|
0.8
|
24,749
|
0.6
|
||||||||||||||||||
Real estate - mortgage
|
4,189,374
|
88.5
|
3,980,294
|
89.7
|
3,769,582
|
88.8
|
||||||||||||||||||
Home equity lines of credit
|
286,432
|
6.0
|
230,976
|
5.2
|
242,194
|
5.7
|
||||||||||||||||||
Installment loans
|
12,307
|
0.3
|
9,416
|
0.2
|
9,617
|
0.2
|
||||||||||||||||||
Total loans
|
4,733,201
|
100.0
|
%
|
4,438,779
|
100.0
|
%
|
4,244,470
|
100.0
|
% |
|||||||||||||||
Less: Allowance for loan losses
|
46,032
|
44,267
|
49,595
|
|||||||||||||||||||||
Net loans (1)
|
$
|
4,687,169
|
$
|
4,394,512
|
$
|
4,194,875
|
Average Balances
|
||||||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||||||||||||
Commercial
|
$
|
185,314
|
4.1
|
%
|
$
|
193,370
|
4.5
|
%
|
$
|
203,314
|
4.9
|
%
|
$
|
176,165
|
4.5
|
%
|
$
|
175,814
|
4.7
|
%
|
||||||||||||||||||||
Real estate - construction
|
36,815
|
0.8
|
31,014
|
0.7
|
26,641
|
0.6
|
27,728
|
0.7
|
26,717
|
0.7
|
||||||||||||||||||||||||||||||
Real estate - mortgage
|
4,065,135
|
89.3
|
3,870,097
|
89.2
|
3,667,909
|
88.2
|
3,433,683
|
87.4
|
3,236,631
|
86.5
|
||||||||||||||||||||||||||||||
Home equity lines of credit
|
254,168
|
5.6
|
233,628
|
5.4
|
255,583
|
6.1
|
277,905
|
7.1
|
297,678
|
7.9
|
||||||||||||||||||||||||||||||
Installment loans
|
9,849
|
0.2
|
8,725
|
0.2
|
9,952
|
0.2
|
10,718
|
0.3
|
9,242
|
0.2
|
||||||||||||||||||||||||||||||
Total loans
|
4,551,281
|
100.0
|
%
|
4,336,834
|
100.0
|
%
|
4,163,399
|
100.0
|
%
|
3,926,199
|
100.0
|
%
|
3,746,082
|
100.0
|
%
|
|||||||||||||||||||||||||
Less: Allowance for loan losses
|
46,124
|
49,421
|
47,330
|
44,639
|
44,651
|
|||||||||||||||||||||||||||||||||||
Net loans (1)
|
$
|
4,505,157
|
$
|
4,287,413
|
$
|
4,116,069
|
$
|
3,881,560
|
$
|
3,701,431
|
(dollars in thousands)
|
Amounts Due:
|
|||||||||||||||||||||||
Total Due
|
||||||||||||||||||||||||
Within 1 Year
|
1 to 5 Years
|
5 to 15 Years
|
Over 15 Years
|
After 1 Year
|
Total
|
|||||||||||||||||||
Commercial
|
$
|
14,965
|
$
|
41,802
|
$
|
134,926
|
$
|
18,229
|
$
|
194,957
|
$
|
209,922
|
||||||||||||
Commercial - other
|
10,712
|
7,582
|
2,766
|
29
|
10,377
|
21,089
|
||||||||||||||||||
First Mortgage
|
3,069
|
12,622
|
507,874
|
3,623,337
|
4,143,833
|
4,146,902
|
||||||||||||||||||
Home Equity Loans
|
119
|
1,937
|
24,942
|
29,551
|
56,430
|
56,549
|
||||||||||||||||||
Home Equity Lines of Credit
|
3,031
|
93,459
|
119,102
|
70,840
|
283,401
|
286,432
|
||||||||||||||||||
Installment
|
1,616
|
8,600
|
2,091
|
-
|
10,691
|
12,307
|
||||||||||||||||||
$
|
33,512
|
$
|
166,002
|
$
|
791,701
|
$
|
3,741,986
|
$
|
4,699,689
|
$
|
4,733,201
|
Floating or
|
||||||||||||
(dollars in thousands)
|
Fixed Rates
|
Adjustable Rates
|
Total
|
|||||||||
Commercial
|
$
|
191,473
|
$
|
3,484
|
$
|
194,957
|
||||||
Commercial - other
|
8,232
|
2,145
|
10,377
|
|||||||||
First Mortgage
|
4,143,833
|
-
|
4,143,833
|
|||||||||
Home Equity Loans
|
56,430 |
-
|
56,430 | |||||||||
Home Equity Lines of Credit
|
66,123
|
217,278
|
283,401
|
|||||||||
Installment
|
10,691
|
-
|
10,691
|
|||||||||
$
|
4,476,782
|
$
|
222,907
|
$
|
4,699,689
|
(dollars in thousands)
|
As of December 31,
|
|||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||||||||
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||
U. S. government sponsored
enterprises
|
$
|
124,123
|
$
|
118,187
|
$
|
59,976
|
$
|
59,179
|
$
|
20,000
|
$
|
19,968
|
||||||||||||
State and political subdivisions
|
34
|
34
|
41
|
41
|
103
|
103
|
||||||||||||||||||
Mortgage backed securities and
collateralized
mortgage obligations-residential
|
291,431
|
260,316
|
269,907
|
270,798
|
308,432
|
316,158
|
||||||||||||||||||
Corporate bonds
|
85,641
|
81,346
|
45,805
|
45,337
|
59,185
|
59,939
|
||||||||||||||||||
Small Business Adminstration-
guaranteed
participation securities
|
23,115
|
20,977
|
31,303
|
31,674
|
40,955
|
42,217
|
||||||||||||||||||
Other
|
686
|
653
|
685
|
684
|
685
|
686
|
||||||||||||||||||
Total securities available for sale
|
525,030
|
481,513
|
407,717
|
407,713
|
429,360
|
439,071
|
||||||||||||||||||
Held to maturity securities:
|
||||||||||||||||||||||||
Mortgage backed securities and collateralized
mortgage obligations-residential
|
7,707
|
7,580
|
9,923
|
10,695
|
13,824
|
14,988
|
||||||||||||||||||
Total held to maturity securities
|
7,707
|
7,580
|
9,923
|
10,695
|
13,824
|
14,988
|
||||||||||||||||||
Total investment securities
|
$
|
532,737
|
$
|
489,093
|
$
|
417,640
|
$
|
418,408
|
$
|
443,184
|
$
|
454,059
|
(dollars in thousands)
|
As of December 31, 2022
|
|||||||||||||||||||
Maturing:
|
||||||||||||||||||||
After 1
|
After 5
|
|||||||||||||||||||
Within
|
But Within
|
But Within
|
After
|
|||||||||||||||||
Debt securities available for sale:
|
1 Year
|
5 Years
|
10 Years
|
10 Years
|
Total
|
|||||||||||||||
U. S. government sponsored enterprises
|
||||||||||||||||||||
Amortized cost
|
$
|
-
|
$
|
124,123
|
$
|
-
|
$
|
-
|
$
|
124,123
|
||||||||||
Fair Value
|
-
|
118,187
|
-
|
-
|
118,187
|
|||||||||||||||
Weighted average yield
|
-
|
%
|
2.61
|
-
|
-
|
2.61
|
||||||||||||||
State and political subdivisions
|
||||||||||||||||||||
Amortized cost
|
$
|
8
|
26
|
-
|
-
|
34
|
||||||||||||||
Fair Value
|
8
|
26
|
-
|
-
|
34
|
|||||||||||||||
Weighted average yield
|
5.23
|
%
|
5.27
|
-
|
-
|
5.26
|
||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
||||||||||||||||||||
Amortized cost
|
$
|
28
|
136,576
|
154,827
|
-
|
291,431
|
||||||||||||||
Fair Value
|
28
|
125,376
|
134,912
|
-
|
260,316
|
|||||||||||||||
Weighted average yield
|
1.70
|
%
|
2.27
|
2.80
|
-
|
2.56
|
||||||||||||||
Corporate bonds
|
||||||||||||||||||||
Amortized cost
|
$
|
5,000
|
80,641
|
-
|
-
|
85,641
|
||||||||||||||
Fair Value
|
4,975
|
76,371
|
-
|
-
|
81,346
|
|||||||||||||||
Weighted average yield
|
3.77
|
%
|
2.37
|
-
|
-
|
2.45
|
||||||||||||||
Small Business Administration-guaranteed participation securities
|
||||||||||||||||||||
Amortized cost
|
$
|
23,115
|
-
|
-
|
-
|
23,115
|
||||||||||||||
Fair Value
|
20,977
|
-
|
-
|
-
|
20,977
|
|||||||||||||||
Weighted average yield
|
2.12
|
%
|
-
|
-
|
-
|
2.12
|
||||||||||||||
Other
|
||||||||||||||||||||
Amortized cost
|
$
|
36
|
650
|
-
|
-
|
686
|
||||||||||||||
Fair Value
|
36
|
617
|
-
|
-
|
653
|
|||||||||||||||
Weighted average yield
|
0.01
|
%
|
2.21
|
-
|
-
|
2.09
|
||||||||||||||
Total securities available for sale
|
||||||||||||||||||||
Amortized cost
|
$
|
28,187
|
$
|
342,016
|
$
|
154,827
|
$
|
-
|
$
|
525,030
|
||||||||||
Fair Value
|
$
|
26,024
|
$
|
320,577
|
$
|
134,912
|
$
|
-
|
$
|
481,513
|
||||||||||
Weighted average yield
|
2.41
|
%
|
2.41
|
2.80
|
-
|
2.53
|
||||||||||||||
Held to maturity securities: | ||||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
||||||||||||||||||||
Amortized cost
|
$ | - |
$ | 199 |
$ | 2,886 |
$ | 4,622 |
$ | 7,707 |
||||||||||
Fair Value
|
- |
193 |
2,697 |
4,690 |
7,580 |
|||||||||||||||
Weighted average yield
|
- |
% | 4.58 |
2.91 |
5.48 |
4.96 |
% | |||||||||||||
Total held to maturity securities
|
||||||||||||||||||||
Amortized cost
|
$ | - |
$ | 199 |
$ | 2,886 |
$ | 4,622 |
$ | 7,707 |
||||||||||
Fair Value
|
$ | - |
$ | 193 |
$ | 2,697 |
$ | 4,690 |
$ | 7,580 |
||||||||||
Weighted average yield
|
- |
% | 4.58 |
2.91 |
5.48 |
4.96 |
% |
(dollars in thousands)
|
As of December 31, 2022
|
|||||||||||||||
Based on
|
Based on
|
|||||||||||||||
Final Maturity
|
Call Date
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Within 1 year
|
$
|
5,044
|
$
|
5,020
|
$
|
187,466
|
$
|
177,157
|
||||||||
1 to 5 years
|
207,516
|
197,147
|
182,738
|
169,444
|
||||||||||||
5 to 10 years
|
66,853
|
61,598
|
154,826
|
134,912
|
||||||||||||
After 10 years
|
245,617
|
217,748
|
-
|
-
|
||||||||||||
Total debt securities available for sale
|
$
|
525,030
|
$
|
481,513
|
$
|
525,030
|
$
|
481,513
|
(dollars in thousands)
|
As of December 31, 2022
|
|||||||||||||||
Based on
|
Based on
|
|||||||||||||||
Final Maturity
|
Call Date
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Within 1 year
|
$
|
-
|
$
|
-
|
$
|
16
|
$
|
16
|
||||||||
1 to 5 years
|
199
|
193
|
6,410
|
6,262
|
||||||||||||
5 to 10 years
|
2,886
|
2,697
|
1,281
|
1,302
|
||||||||||||
After 10 years
|
4,622
|
4,690
|
-
|
-
|
||||||||||||
Total held to maturity securities
|
$
|
7,707
|
$
|
7,580
|
$
|
7,707
|
$
|
7,580
|
(dollars in thousands)
|
2022
|
2021
|
Components of
|
|||||||||||||||||||||||||||||
vs.
|
vs.
|
Total Funding
|
||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
2021
|
2020
|
2022
|
2021
|
2020
|
|||||||||||||||||||||||||
Retail deposits
|
||||||||||||||||||||||||||||||||
Demand deposits
|
$
|
838,944
|
$
|
750,111
|
$
|
567,265
|
$
|
88,833
|
$
|
182,846
|
15.30
|
%
|
13.8
|
%
|
9.4
|
%
|
||||||||||||||||
Savings
|
1,553,016
|
1,397,432
|
1,191,532
|
155,584
|
205,900
|
28.30
|
25.8
|
24.8
|
||||||||||||||||||||||||
Time deposits under $250 thousand
|
755,842
|
964,541
|
1,126,636
|
(208,698
|
)
|
(162,095
|
)
|
13.80
|
17.8
|
26.0
|
||||||||||||||||||||||
Interest bearing checking accounts
|
1,190,337
|
1,134,702
|
971,385
|
55,635
|
163,317
|
21.70
|
20.9
|
19.1
|
||||||||||||||||||||||||
Money market deposits
|
745,714
|
739,139
|
662,107
|
6,575
|
77,032
|
13.60
|
13.6
|
12.2
|
||||||||||||||||||||||||
Total retail deposits
|
5,083,853
|
4,985,925
|
4,518,925
|
97,929
|
467,000
|
92.70
|
91.9
|
91.5
|
||||||||||||||||||||||||
Time deposits over $250 thousand
|
218,586
|
202,422
|
223,527
|
16,163
|
(21,105
|
)
|
4.00
|
3.7
|
5.0
|
|||||||||||||||||||||||
Short-term borrowings
|
177,599
|
232,815
|
180,065
|
(55,216
|
)
|
52,750
|
3.30
|
4.4
|
3.5
|
|||||||||||||||||||||||
Total purchased liabilities
|
396,185
|
435,237
|
403,592
|
(39,053
|
)
|
31,645
|
7.30
|
8.1
|
8.5
|
|||||||||||||||||||||||
Total sources of funding
|
$
|
5,480,038
|
5,421,162
|
4,922,517
|
58,876
|
498,645
|
100.00
|
%
|
100.0
|
100.0
|
(dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||||||||||||||||||||||||||
Interest
|
Interest
|
Interest
|
||||||||||||||||||||||||||||||||||
Average
|
Income/
|
Average
|
Average
|
Income/
|
Average
|
Average
|
Income/
|
Average
|
||||||||||||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Loans, net
|
$
|
4,551,281
|
$
|
162,214
|
3.56
|
%
|
$
|
4,336,834
|
$
|
159,168
|
3.67
|
%
|
$
|
4,163,399
|
$
|
165,964
|
3.99
|
%
|
||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||||||
U.S. government sponsored enterprises
|
89,557
|
1,405
|
1.57
|
63,743
|
314
|
0.49
|
38,508
|
568
|
1.48
|
|||||||||||||||||||||||||||
State and political subdivisions
|
41
|
3
|
6.66
|
48
|
3
|
6.56
|
111
|
9
|
7.82
|
|||||||||||||||||||||||||||
Mortgage backed securities and
collateralized mortgage obligations-residential
|
284,901
|
5,677
|
1.99
|
308,777
|
4,515
|
1.46
|
333,093
|
6,131
|
1.84
|
|||||||||||||||||||||||||||
Corporate bonds
|
78,266
|
1,804
|
2.31
|
53,699
|
1,065
|
1.98
|
50,982
|
1,721
|
3.38
|
|||||||||||||||||||||||||||
Small Business Administration-
guaranteed participation securities
|
26,679
|
551
|
2.07
|
35,723
|
745
|
2.09
|
44,379
|
902
|
2.03
|
|||||||||||||||||||||||||||
Other
|
686
|
9
|
1.31
|
685
|
20
|
2.92
|
686
|
23
|
3.35
|
|||||||||||||||||||||||||||
Total securities available for sale
|
480,130
|
9,449
|
1.97
|
462,675
|
6,662
|
1.44
|
467,759
|
9,354
|
2.00
|
|||||||||||||||||||||||||||
Held to maturity securities:
|
||||||||||||||||||||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations-residential
|
8,647
|
343
|
3.97
|
11,733
|
435
|
3.71
|
16,376
|
604
|
3.69
|
|||||||||||||||||||||||||||
Total held to maturity securities
|
8,647
|
343
|
3.97
|
11,733
|
435
|
3.71
|
16,376
|
604
|
3.69
|
|||||||||||||||||||||||||||
Federal Reserve Bank and Federal Home
|
||||||||||||||||||||||||||||||||||||
Loan Bank stock
|
5,749
|
305
|
5.31
|
5,578
|
260
|
4.66
|
7,381
|
421
|
5.70
|
|||||||||||||||||||||||||||
Federal funds sold and other short-term
|
||||||||||||||||||||||||||||||||||||
investments
|
969,043
|
14,292
|
1.47
|
1,111,257
|
1,458
|
0.13
|
748,085
|
1,948
|
0.26
|
|||||||||||||||||||||||||||
Total interest earning assets
|
6,014,850
|
186,603
|
3.10
|
%
|
5,928,077
|
167,983
|
2.83
|
%
|
5,403,000
|
178,291
|
3.30
|
%
|
||||||||||||||||||||||||
Allowance for loan losses
|
(46,124
|
)
|
(49,421
|
)
|
(47,330
|
)
|
||||||||||||||||||||||||||||||
Cash and noninterest earning assets
|
190,278
|
196,825
|
197,966
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
6,159,004
|
$
|
6,075,481
|
$
|
5,553,636
|
||||||||||||||||||||||||||||||
Liabilities and shareholders' equity
|
||||||||||||||||||||||||||||||||||||
Interest bearing deposits:
|
||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts
|
$
|
1,190,337
|
190
|
0.02
|
%
|
$
|
1,134,702
|
178
|
0.02
|
%
|
$
|
971,385
|
148
|
0.02
|
%
|
|||||||||||||||||||||
Savings
|
1,553,016
|
920
|
0.06
|
1,397,432
|
624
|
0.04
|
1,191,532
|
716
|
0.06
|
|||||||||||||||||||||||||||
Time deposits and money markets
|
1,720,142
|
4,617
|
0.27
|
1,906,102
|
5,863
|
0.31
|
2,012,270
|
22,834
|
1.13
|
|||||||||||||||||||||||||||
Total interest bearing deposits
|
4,463,495
|
5,727
|
0.13
|
4,438,236
|
6,665
|
0.15
|
4,175,187
|
23,698
|
0.57
|
|||||||||||||||||||||||||||
Short-term borrowings
|
177,599
|
740
|
0.42
|
232,815
|
909
|
0.39
|
180,065
|
1,010
|
0.56
|
|||||||||||||||||||||||||||
Total interest bearing liabilities
|
4,641,094
|
6,467
|
0.14
|
%
|
4,671,051
|
7,574
|
0.16
|
%
|
4,355,252
|
24,708
|
0.57
|
%
|
||||||||||||||||||||||||
Demand deposits
|
838,944
|
750,111
|
567,265
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
81,880
|
74,396
|
77,487
|
|||||||||||||||||||||||||||||||||
Shareholders' equity
|
597,086
|
579,923
|
553,632
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
6,159,004
|
$
|
6,075,481
|
$
|
5,553,636
|
||||||||||||||||||||||||||||||
Net interest income
|
180,136
|
160,409
|
153,583
|
|||||||||||||||||||||||||||||||||
Taxable equivalent adjustment
|
(1
|
)
|
(1
|
)
|
(3
|
)
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
180,135
|
$
|
160,408
|
$
|
153,580
|
||||||||||||||||||||||||||||||
Net interest spread
|
2.96
|
%
|
2.67
|
%
|
2.73
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (net interest income
|
||||||||||||||||||||||||||||||||||||
to total interest earnings assets)
|
2.99
|
2.71
|
2.84
|
(dollars in thousands)
|
Years ended December 31,
|
|||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
Individuals, partnerships and corporations
|
$
|
5,262,996
|
$
|
5,144,071
|
$
|
4,700,635
|
$
|
4,380,866
|
$
|
4,184,850
|
||||||||||
States and political subdivisions
|
14,854
|
15,761
|
15,709
|
8,663
|
3,007
|
|||||||||||||||
Other (certified and official checks, etc.)
|
24,589
|
28,515
|
26,108
|
19,531
|
18,720
|
|||||||||||||||
Total average deposits by type of depositor
|
$
|
5,302,439
|
$
|
5,188,347
|
$
|
4,742,452
|
$
|
4,409,060
|
$
|
4,206,577
|
(dollars in thousands)
|
||||
As of December 31, 2022
|
||||
Under 3 months
|
$
|
28,788
|
||
3 to 6 months
|
50,154
|
|||
6 to 12 months
|
77,335
|
|||
Over 12 months
|
93,748
|
|||
Total
|
$
|
250,025
|
(dollars in thousands)
|
2022 vs. 2021
|
2021 vs. 2020
|
||||||||||||||||||||||
Increase
|
Due to
|
Due to
|
Increase
|
Due to
|
Due to
|
|||||||||||||||||||
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
|||||||||||||||||||
Interest income (TE):
|
||||||||||||||||||||||||
Federal funds sold and other short-term
|
||||||||||||||||||||||||
investments
|
$
|
12,834
|
$
|
(211
|
)
|
$
|
13,045
|
$
|
(490
|
)
|
$
|
714
|
$
|
(1,204
|
)
|
|||||||||
Securities available for sale:
|
||||||||||||||||||||||||
Taxable
|
2,787
|
157
|
2,630
|
(2,686
|
)
|
(266
|
)
|
(2,420
|
)
|
|||||||||||||||
Tax-exempt
|
-
|
0
|
(0
|
)
|
(6
|
)
|
(5
|
)
|
(1
|
)
|
||||||||||||||
Total securities available for sale
|
2,787
|
157
|
2,630
|
(2,692
|
)
|
(271
|
)
|
(2,421
|
)
|
|||||||||||||||
Held to maturity securities (taxable)
|
(92
|
)
|
(121
|
)
|
29
|
(169
|
)
|
(172
|
)
|
3
|
||||||||||||||
Federal Reserve Bank and Federal Home
|
||||||||||||||||||||||||
Loan Bank stock
|
45
|
8
|
37
|
(161
|
)
|
(92
|
)
|
(69
|
)
|
|||||||||||||||
Loans, net
|
3,046
|
7,572
|
(4,526
|
)
|
(6,796
|
)
|
6,391
|
(13,187
|
)
|
|||||||||||||||
Total interest income
|
18,620
|
7,405
|
11,215
|
(10,308
|
)
|
6,570
|
(16,878
|
)
|
||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Interest bearing checking accounts
|
12
|
9
|
3
|
30
|
26
|
4
|
||||||||||||||||||
Savings
|
296
|
76
|
220
|
(92
|
)
|
111
|
(203
|
)
|
||||||||||||||||
Time deposits and money markets
|
(1,246
|
)
|
(747
|
)
|
(499
|
)
|
(16,971
|
)
|
(2,061
|
)
|
(14,910
|
)
|
||||||||||||
Short-term borrowings
|
(169
|
)
|
(227
|
)
|
58
|
(101
|
)
|
251
|
(352
|
)
|
||||||||||||||
Total interest expense
|
(1,107
|
)
|
(889
|
)
|
(218
|
)
|
(17,134
|
)
|
(1,673
|
)
|
(15,461
|
)
|
||||||||||||
Net interest income (TE)
|
$
|
19,727
|
$
|
8,294
|
$
|
11,433
|
$
|
6,826
|
$
|
8,243
|
$
|
(1,417
|
)
|
(dollars in thousands)
|
As of December 31,
|
|||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
Loans in non-accrual status
|
$
|
17,483
|
$
|
18,739
|
$
|
21,061
|
$
|
20,840
|
$
|
24,952
|
||||||||||
Restructured retail loans
|
10
|
17
|
23
|
29
|
34
|
|||||||||||||||
Total nonperforming loans
|
17,493
|
18,756
|
21,084
|
20,869
|
24,986
|
|||||||||||||||
Foreclosed real estate
|
2,061
|
362
|
541
|
1,579
|
1,676
|
|||||||||||||||
Total nonperforming assets
|
$
|
19,554
|
$
|
19,118
|
$
|
21,625
|
$
|
22,448
|
$
|
26,662
|
||||||||||
Allowance for credit losses on loans
|
$
|
46,032
|
$
|
44,267
|
$
|
49,595
|
$
|
44,317
|
$
|
44,766
|
||||||||||
Allowance coverage of nonperforming loans
|
2.63
|
x |
2.36
|
x |
2.35
|
x |
2.12
|
x |
1.79
|
x | ||||||||||
Allowance for credit losses on loans to nonaccrual loans
|
2.63
|
x |
2.36
|
x |
2.35
|
x |
2.13
|
x |
1.79
|
x | ||||||||||
Nonperforming loans as a % of total loans
|
0.37
|
%
|
0.42
|
%
|
0.50
|
%
|
0.51
|
%
|
0.64
|
% | ||||||||||
Nonperforming assets as a % of total assets
|
0.33
|
%
|
0.31
|
%
|
0.37
|
%
|
0.43
|
%
|
0.54
|
% | ||||||||||
Non-accrual loans to total loans outstanding
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.01
|
%
|
0.01
|
% |
•
|
unemployment rates increasing 1% for both New York and Florida,
|
•
|
an increase in consumer price indices (“CPI”) of 7% for New York and 9% for Florida,
|
•
|
a decrease in Gross Metro Product (“GMP”) of 0.1% for New York,
|
•
|
an increase in Gross Metro Product (“GMP”) of 3.6% for Florida,
|
•
|
a decrease in the housing price index of 3% for New York and an increase of 11% for Florida.
|
(dollars in thousands)
|
||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
Amount of loans outstanding at end of year (less unearned income)
|
$
|
4,733,201
|
$
|
4,438,779
|
$
|
4,244,470
|
$
|
4,062,196
|
$
|
3,874,096
|
||||||||||
Average loans outstanding during year (less average unearned income)
|
4,551,281
|
4,336,834
|
4,163,399
|
3,926,199
|
3,746,082
|
|||||||||||||||
Balance of allowance at beginning of year
|
44,267
|
49,595
|
44,317
|
44,766
|
44,170
|
|||||||||||||||
Impact of ASU 2016-13, Current Expected Credit Loss (CECL)
|
2,353
|
-
|
-
|
-
|
-
|
|||||||||||||||
Balance as of January 1, 2022 as adjusted for ASU 2016-13
|
46,620
|
49,595
|
44,317
|
44,766
|
44,170
|
|||||||||||||||
Loans charged off:
|
||||||||||||||||||||
Commercial and commercial real estate
|
40
|
30
|
36
|
20
|
100
|
|||||||||||||||
Real estate mortgage - 1 to 4 family
|
24
|
340
|
404
|
974
|
846
|
|||||||||||||||
Installment
|
88
|
60
|
221
|
213
|
257
|
|||||||||||||||
Total
|
152
|
430
|
661
|
1,207
|
1,203
|
|||||||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||||||
Commercial and commercial real estate
|
4
|
32
|
10
|
46
|
10
|
|||||||||||||||
Real estate mortgage - 1 to 4 family
|
450
|
466
|
317
|
532
|
351
|
|||||||||||||||
Installment
|
10
|
54
|
12
|
21
|
38
|
|||||||||||||||
Total
|
464
|
552
|
339
|
599
|
399
|
|||||||||||||||
Net loan (recoveries) chargeoffs
|
(312
|
)
|
(122
|
)
|
322
|
608
|
804
|
|||||||||||||
Provision for credit losses on loans
|
(900
|
)
|
(5,450
|
)
|
5,600
|
159
|
1,400
|
|||||||||||||
Balance of allowance at end of year
|
$
|
46,032
|
$
|
44,267
|
$
|
49,595
|
$
|
44,317
|
$
|
44,766
|
||||||||||
Net charge offs as a percent of average loans outstanding during year (less average unearned income)
|
(0.01
|
)%
|
0.00
|
%
|
0.01
|
%
|
0.02
|
%
|
0.02
|
|||||||||||
Allowance as a percent of loans outstanding at end of year
|
0.97
|
1.00
|
1.17
|
1.09
|
1.16
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||||||||||||||||||||||||||
Net charge-
|
Net charge-
|
Net charge-
|
||||||||||||||||||||||||||||||||||
offs as a
|
offs as a
|
offs as a
|
||||||||||||||||||||||||||||||||||
Net
|
Average
|
percent of
|
Net
|
Average
|
percent of
|
Net
|
Average
|
percent of
|
||||||||||||||||||||||||||||
charge-offs
|
loans
|
average loans
|
charge-offs
|
loans
|
average loans
|
charge-offs
|
loans
|
average loans
|
||||||||||||||||||||||||||||
(recoveries)
|
outstanding
|
outstanding
|
(recoveries)
|
outstanding
|
outstanding
|
(recoveries)
|
outstanding
|
outstanding
|
||||||||||||||||||||||||||||
Commercial
|
$
|
36
|
$
|
206,144
|
0.02
|
%
|
$
|
(2
|
)
|
$
|
210,145
|
0.00
|
%
|
$
|
26
|
$
|
219,328
|
0.01
|
%
|
|||||||||||||||||
Real estate mortgage - 1 to 4 family
|
(426
|
)
|
4,335,288
|
-0.01
|
%
|
(126
|
)
|
4,117,964
|
0.00
|
%
|
87
|
3,934,119
|
0.00
|
%
|
||||||||||||||||||||||
Installment
|
78
|
9,849
|
0.79
|
%
|
6
|
8,725
|
0.07
|
%
|
209
|
9,952
|
2.10
|
%
|
||||||||||||||||||||||||
Total net (recoveries) chargeoffs
|
$
|
(312
|
)
|
$
|
4,551,281
|
-0.01
|
%
|
$
|
(122
|
)
|
$
|
4,336,834
|
0.00
|
%
|
$
|
322
|
$
|
4,163,399
|
0.01
|
%
|
(dollars in thousands)
|
As of
|
As of
|
||||||||||||||
December 31, 2022
|
December 31, 2021
|
|||||||||||||||
Percent of
|
Percent of
|
|||||||||||||||
Loans to
|
Loans to
|
|||||||||||||||
Amount
|
Total Loans
|
Amount
|
Total Loans
|
|||||||||||||
Commercial
|
$
|
2,343
|
4.41
|
%
|
$
|
2,942
|
4.08
|
%
|
||||||||
Real estate - construction
|
385
|
0.77
|
%
|
375
|
0.84
|
%
|
||||||||||
Real estate mortgage - 1 to 4 family
|
38,859
|
88.51
|
%
|
37,650
|
89.67
|
%
|
||||||||||
Home equity lines of credit
|
4,280
|
6.05
|
%
|
2,857
|
5.20
|
%
|
||||||||||
Installment Loans
|
165
|
0.26
|
%
|
443
|
0.21
|
%
|
||||||||||
$
|
46,032
|
100.00
|
%
|
$
|
44,267
|
100.00
|
%
|
(dollars in thousands)
|
December 31, 2022
|
|||||||||||||||||||||||
1 to 12 Months
|
13 to 24 Months
|
|||||||||||||||||||||||
Change in
|
$ Amount
|
% Change
|
$ Amount
|
% Change
|
$ Amount
|
% Change
|
||||||||||||||||||
Interest Rates
|
of EVE
|
in EVE
|
of NII
|
In NII
|
of NII
|
In NII
|
||||||||||||||||||
+400 BP
|
1,428,613
|
-17.2
|
%
|
174,432
|
-9.7
|
%
|
178,258
|
-10.2
|
%
|
|||||||||||||||
+300 BP
|
1,473,359
|
-14.6
|
%
|
178,561
|
-7.6
|
%
|
181,724
|
-8.4
|
%
|
|||||||||||||||
+200 BP
|
1,578,927
|
-8.5
|
%
|
194,154
|
0.5
|
%
|
196,646
|
-0.9
|
%
|
|||||||||||||||
+100 BP
|
1,687,831
|
-2.2
|
%
|
194,334
|
0.6
|
%
|
199,473
|
0.5
|
%
|
|||||||||||||||
Current rates
|
1,725,968
|
0.0
|
%
|
193,159
|
0.0
|
%
|
198,496
|
0.0
|
%
|
|||||||||||||||
-100 BP
|
1,686,243
|
-2.3
|
%
|
189,936
|
-1.7
|
%
|
193,224
|
-2.7
|
%
|
|||||||||||||||
-200 BP
|
1,559,345
|
-9.7
|
%
|
181,248
|
-6.2
|
%
|
180,187
|
-9.2
|
%
|
|||||||||||||||
-300 BP
|
1,388,557
|
-19.5
|
%
|
173,269
|
-10.3
|
%
|
169,390
|
-14.7
|
%
|
(dollars in thousands)
|
At December 31, 2022
|
|||||||||||||||||||
Repricing in:
|
||||||||||||||||||||
Less than 1
|
1-5
|
Over 5
|
Rate
|
|||||||||||||||||
year
|
years
|
years
|
Insensitive
|
Total
|
||||||||||||||||
Total assets
|
$
|
1,511,604
|
2,438,339
|
1,882,483
|
167,626
|
6,000,052
|
||||||||||||||
Cumulative total assets
|
$
|
1,511,604
|
3,949,943
|
5,832,426
|
6,000,052
|
|||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,648,816
|
145,459
|
3,520,617
|
685,160
|
6,000,052
|
||||||||||||||
Cumulative total liabilities and shareholders' equity
|
$
|
1,648,816
|
1,794,275
|
5,314,892
|
6,000,052
|
|||||||||||||||
Cumulative interest sensitivity gap
|
$
|
(137,212
|
)
|
2,155,668
|
517,534
|
|||||||||||||||
Cumulative gap as a % of interest earning assets for the period
|
(9.1
|
%)
|
54.6
|
%
|
8.9
|
%
|
||||||||||||||
Cumulative interest sensitive assets to liabilities
|
91.7
|
%
|
220.1
|
%
|
109.7
|
%
|
(dollars in thousands)
|
Payments Due by Period:
|
|||||||||||||||||||
Less Than
|
1-3
|
3-5
|
More than
|
|||||||||||||||||
1 Year
|
Years
|
Years
|
5 Years
|
Total
|
||||||||||||||||
Operating leases
|
$
|
8,310
|
$
|
15,997
|
$
|
12,361
|
$
|
19,260
|
$
|
55,928
|
(dollars in thousands)
|
For the year ended December 31,
|
2022 vs. 2021
|
||||||||||||||||||
2022
|
2021
|
2020
|
Amount
|
Percent
|
||||||||||||||||
Trustco Financial Services income
|
$
|
7,037
|
$
|
7,358
|
$
|
6,279
|
$
|
(321
|
)
|
(4.4
|
)%
|
|||||||||
Fees for services to customers
|
10,947
|
9,799
|
8,779
|
1,148
|
11.7
|
|||||||||||||||
Net gain on securities transactions
|
-
|
-
|
1,155
|
-
|
-
|
|||||||||||||||
Other
|
1,276
|
780
|
957
|
496
|
63.6
|
|||||||||||||||
Total noninterest income
|
$
|
19,260
|
$
|
17,937
|
$
|
17,170
|
$
|
1,323
|
7.4
|
%
|
(dollars in thousands)
|
For the year ended December 31,
|
2022 vs. 2021
|
||||||||||||||||||
2022
|
2021
|
2020
|
Amount
|
Percent
|
||||||||||||||||
Salaries and employee benefits
|
$
|
45,904
|
$
|
48,721
|
$
|
45,647
|
$
|
(2,817
|
)
|
(5.8
|
)%
|
|||||||||
Net occupancy expense
|
17,527
|
17,742
|
17,519
|
(215
|
)
|
(1.2
|
)
|
|||||||||||||
Equipment expense
|
6,487
|
6,617
|
6,636
|
(130
|
)
|
(2.0
|
)
|
|||||||||||||
Professional services
|
5,577
|
6,108
|
5,618
|
(531
|
)
|
(8.7
|
)
|
|||||||||||||
Outsourced services
|
9,210
|
8,384
|
7,750
|
826
|
9.9
|
|||||||||||||||
Advertising expense
|
2,046
|
1,975
|
1,921
|
71
|
3.6
|
|||||||||||||||
FDIC and other insurance
|
3,159
|
3,010
|
2,220
|
149
|
5.0
|
|||||||||||||||
Other real estate expense (income), net
|
310
|
183
|
92
|
127
|
69.4
|
|||||||||||||||
Other
|
10,099
|
8,922
|
8,301
|
1,177
|
13.2
|
|||||||||||||||
Total noninterest expense
|
$
|
100,319
|
$
|
101,662
|
$
|
95,704
|
$
|
(1,343
|
)
|
(1.3
|
)%
|
• |
changes in interest rates, including recent and possible future increases fueled by inflation, may significantly impact our financial condition and results of operations;
|
• |
inflationary pressures and rising prices may affect our results of operations and financial condition;
|
• |
exposure to credit risk in our lending activities;
|
• |
the allowance for credit losses on loans (“ACLL”) is not sufficient to cover actual loan losses, resulting in a decrease in earnings;
|
• |
our inability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities;
|
• |
we are subject to claims and litigation pertaining to fiduciary responsibility and lender liability;
|
• |
our dependency upon the services of the management team;
|
• |
our disclosure controls and procedures may not prevent or detect all errors or acts of fraud;
|
• |
if the business continuity and disaster recovery plans that we have in place are not adequate to continue our operations in the event of a disaster, the business disruption can adversely impact its
operations;
|
• |
our risk management framework may not be effective in mitigating risk and loss;
|
• |
a prolonged economic downturn, especially one affecting our geographic market area, will adversely affect our operations and financial results;
|
• |
instability in global economic conditions and geopolitical matters, as well as volatility in financial markets, could have a material adverse effect on our results of operations and financial condition;
|
• |
the COVID-19 pandemic could continue to have an adverse effect on our business;
|
• |
the soundness of other financial institutions could adversely affect us;
|
• |
the trust wealth management fees we receive may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease our revenues and net earnings;
|
• |
regulatory capital rules could slow our growth, cause us to seek to raise additional capital, or both;
|
• |
changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and our income;
|
• |
non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions;
|
• |
changes in tax laws may adversely affect us, and the Internal Revenue Service or a court may disagree with our tax positions, which may result in adverse effects on our business, financial condition,
results of operations or cash flows;
|
• |
our ability to pay dividends is subject to regulatory limitations and other limitations that may affect our ability to pay dividends to our stockholders or to repurchase our common stock;
|
• |
we may be subject to a higher effective tax rate if Trustco Realty Corp. (“Trustco Realty”) fails to qualify as a real estate investment trust (“REIT”);
|
• |
changes in accounting standards could impact reported earnings;
|
• |
strong competition within the Bank’s market areas could hurt profits and slow growth;
|
• |
consumers and businesses are increasingly using non-banks to complete their financial transactions, which could adversely affect our business and results of operations;
|
• |
our business could be adversely affected by third-party service providers, data breaches, and cyber-attacks;
|
• |
a failure in or breach of our operational or security systems or infrastructure, or those of third parties, could disrupt our businesses, and adversely impact our results of operations, liquidity and
financial condition, as well as cause reputational harm;
|
• |
unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business;
|
• |
we could suffer a material adverse impact from interruptions in the effective operation of, or security breaches affecting, our computer systems;
|
• |
new lines of business or new products and services may subject us to additional risks;
|
• |
provisions in our articles of incorporation and bylaws and New York law may discourage or prevent takeover attempts, and these provisions may have the effect of reducing the market price of our stock;
|
• |
we cannot guarantee that the allocation of capital to various alternatives, including stock repurchase plans, will enhance long-term stockholder value;
|
• |
we are exposed to climate risk;
|
• |
societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers; and,
|
• |
other risks and uncertainties included under “Risk Factors” in our Form 10-K for the year ended December 31, 2022.
|
(dollars in thousands, except per share data)
|
||||||||||||||||||||||||||||||||||||||||
2022
|
2021
|
|||||||||||||||||||||||||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|||||||||||||||||||||||||||||||
Income statement:
|
||||||||||||||||||||||||||||||||||||||||
Interest and dividend income
|
$
|
41,290
|
$
|
44,187
|
$
|
49,041
|
$
|
52,084
|
$
|
186,602
|
$
|
42,495
|
$
|
42,055
|
$
|
41,662
|
$
|
41,770
|
$
|
167,982
|
||||||||||||||||||||
Interest expense
|
1,194
|
1,127
|
1,248
|
2,898
|
6,467
|
2,388
|
1,933
|
1,775
|
1,478
|
7,574
|
||||||||||||||||||||||||||||||
Net interest income
|
40,096
|
43,060
|
47,793
|
49,186
|
180,135
|
40,107
|
40,122
|
39,887
|
40,292
|
160,408
|
||||||||||||||||||||||||||||||
(Credit) Provision for loan losses
|
(200
|
)
|
(491
|
)
|
300
|
50
|
(341
|
)
|
350
|
-
|
(2,800
|
)
|
(3,000
|
)
|
(5,450
|
)
|
||||||||||||||||||||||||
Net interest income after provison for loan losses
|
40,296
|
43,551
|
47,493
|
49,136
|
180,476
|
39,757
|
40,122
|
42,687
|
43,292
|
165,858
|
||||||||||||||||||||||||||||||
Noninterest income
|
5,183
|
4,916
|
4,386
|
4,775
|
19,260
|
4,428
|
4,688
|
4,295
|
4,526
|
17,937
|
||||||||||||||||||||||||||||||
Noninterest expense
|
22,765
|
25,005
|
26,144
|
26,405
|
100,319
|
25,335
|
25,440
|
24,697
|
26,190
|
101,662
|
||||||||||||||||||||||||||||||
Income before income taxes
|
22,714
|
23,462
|
25,735
|
27,506
|
99,417
|
18,850
|
19,370
|
22,285
|
21,628
|
82,133
|
||||||||||||||||||||||||||||||
Income tax expense
|
5,625
|
5,591
|
6,371
|
6,596
|
24,183
|
4,767
|
4,937
|
5,523
|
5,387
|
20,614
|
||||||||||||||||||||||||||||||
Net income
|
$
|
17,089
|
$
|
17,871
|
$
|
19,364
|
$
|
20,910
|
$
|
75,234
|
$
|
14,083
|
$
|
14,433
|
$
|
16,762
|
$
|
16,241
|
$
|
61,519
|
||||||||||||||||||||
Per share data:
|
||||||||||||||||||||||||||||||||||||||||
Basic earnings (1)
|
$
|
0.890
|
$
|
0.933
|
$
|
1.013
|
$
|
1.100
|
$
|
3.933
|
$
|
0.730
|
$
|
0.748
|
$
|
0.871
|
$
|
0.845
|
$
|
3.194
|
||||||||||||||||||||
Diluted earnings (1)
|
0.890
|
0.933
|
1.013
|
1.100
|
3.932
|
0.730
|
0.748
|
0.871
|
0.845
|
3.194
|
||||||||||||||||||||||||||||||
Cash dividends declared (1)
|
0.3500
|
0.3500
|
0.3500
|
0.3600
|
1.4100
|
0.3406
|
0.3406
|
0.3406
|
0.3500
|
1.3719
|
(1) |
All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.
|
Crowe LLP
Independent Member Crowe Global
|
•
|
Testing of design and operating effectiveness of management’s internal controls over the (i) reasonableness of significant assumptions used in the
development of the qualitative factors; (ii) relevance and reliability of the data used in the determination of the qualitative factors and (iii) mathematical accuracy.
|
•
|
Testing management’s process related to the evaluation of qualitative factors. Procedures included (i) testing the relevance and reliability of
significant data; (ii) evaluating the reasonableness of significant assumptions; and (iii) evaluating the overall reasonableness of the allowance for credit losses.
|
Years ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Interest and dividend income:
|
||||||||||||
Interest and fees on loans
|
$
|
162,214
|
$
|
159,168
|
$
|
165,964
|
||||||
Interest and dividends on securities available for sale:
|
||||||||||||
U. S. government sponsored enterprises
|
1,405
|
314
|
568
|
|||||||||
State and political subdivisions
|
2
|
2
|
6
|
|||||||||
Mortgage-backed securities and collateralized mortgage obligations-residential
|
5,677
|
4,515
|
6,131
|
|||||||||
Corporate bonds
|
1,804
|
1,065
|
1,721
|
|||||||||
Small Business Administration-guaranteed participation securities
|
551
|
745
|
902
|
|||||||||
Other
|
9
|
20
|
23
|
|||||||||
Total interest and dividends on securities available for sale
|
9,448
|
6,661
|
9,351
|
|||||||||
|
||||||||||||
Interest on held to maturity securities:
|
||||||||||||
Mortgage-backed securities and collateralized mortgage obligations-residential
|
343
|
435
|
604
|
|||||||||
Total interest on held to maturity securities
|
343 | 435 | 604 | |||||||||
|
||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
305
|
260
|
421
|
|||||||||
Interest on federal funds sold and other short-term investments
|
14,292
|
1,458
|
1,948
|
|||||||||
Total interest and dividend income
|
186,602
|
167,982
|
178,288
|
|||||||||
|
||||||||||||
Interest expense:
|
||||||||||||
Interest on deposits
|
5,727
|
6,665
|
23,698
|
|||||||||
Interest on short-term borrowings
|
740
|
909
|
1,010
|
|||||||||
Total interest expense
|
6,467
|
7,574
|
24,708
|
|||||||||
|
||||||||||||
Net interest income
|
180,135
|
160,408
|
153,580
|
|||||||||
(Credit) Provision for credit losses
|
(341
|
)
|
(5,450
|
)
|
5,600
|
|||||||
Net interest income after (credit) provision for credit losses
|
180,476
|
165,858
|
147,980
|
|||||||||
|
||||||||||||
Noninterest income:
|
||||||||||||
Trustco Financial Services income
|
7,037
|
7,358
|
6,279
|
|||||||||
Fees for services to customers
|
10,947
|
9,799
|
8,779
|
|||||||||
Net gain on securities transactions
|
-
|
-
|
1,155
|
|||||||||
Other
|
1,276
|
780
|
957
|
|||||||||
Total noninterest income
|
19,260
|
17,937
|
17,170
|
|||||||||
|
||||||||||||
Noninterest expense:
|
||||||||||||
Salaries and employee benefits
|
45,904
|
48,721
|
45,647
|
|||||||||
Net occupancy expense
|
17,527
|
17,742
|
17,519
|
|||||||||
Equipment expense
|
6,487
|
6,617
|
6,636
|
|||||||||
Professional services
|
5,577
|
6,108
|
5,618
|
|||||||||
Outsourced services
|
9,210
|
8,384
|
7,750
|
|||||||||
Advertising expense
|
2,046
|
1,975
|
1,921
|
|||||||||
FDIC and other insurance expense
|
3,159
|
3,010
|
2,220
|
|||||||||
Other real estate expense, net
|
310
|
183
|
92
|
|||||||||
Other
|
10,099
|
8,922
|
8,301
|
|||||||||
Total noninterest expense
|
100,319
|
101,662
|
95,704
|
|||||||||
|
||||||||||||
Income before income taxes
|
99,417
|
82,133
|
69,446
|
|||||||||
Income taxes
|
24,183
|
20,614
|
16,994
|
|||||||||
Net income
|
$
|
75,234
|
$ |
61,519
|
$ |
52,452
|
||||||
|
||||||||||||
Earnings per share (1):
|
||||||||||||
Basic
|
$
|
3.93
|
$ |
3.19
|
$ |
2.72
|
||||||
Diluted
|
$ |
3.93
|
$ |
3.19
|
$ |
2.72
|
(1)
|
All periods presented have been adjusted for the
reverse stock split which occurred on May 28, 2021. |
|
Years ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
|
||||||||||||
Net income
|
$
|
75,234
|
$ |
61,519
|
$ |
52,452
|
||||||
|
||||||||||||
Net unrealized holding (loss) gain on securities available for sale
|
(43,513
|
)
|
(9,715
|
)
|
10,475
|
|||||||
Reclassification adjustments for net gain recognized in income
|
-
|
-
|
(1,155
|
)
|
||||||||
Tax effect
|
11,268
|
2,503
|
(2,420
|
)
|
||||||||
Net unrealized (loss) gain on securities available for sale, net of tax
|
(32,245
|
)
|
(7,212
|
)
|
6,900
|
|||||||
Change in overfunded position in pension and postretirement plans arising during the year
|
(8,266
|
)
|
10,297
|
1,681
|
||||||||
Tax effect
|
2,148
|
(2,675
|
)
|
(437
|
)
|
|||||||
Change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
(6,118
|
)
|
7,622
|
1,244
|
||||||||
|
||||||||||||
Amortization of net actuarial gain
|
(1,008
|
)
|
(674
|
)
|
(708
|
)
|
||||||
Amortization of prior service (credit) cost
|
(313
|
)
|
405
|
(196
|
)
|
|||||||
Tax effect
|
343
|
70
|
235
|
|||||||||
Amortization of net actuarial gain and prior service (credit) cost on pension and postretirement plans, net of tax
|
(978
|
)
|
(199
|
)
|
(669
|
)
|
||||||
|
||||||||||||
Other comprehensive (loss) income, net of tax
|
(39,341
|
)
|
211
|
7,475
|
||||||||
Comprehensive income
|
$
|
35,893
|
$ |
61,730
|
$ |
59,927
|
As of December 31,
|
||||||||
|
2022
|
2021
|
||||||
ASSETS
|
||||||||
|
||||||||
Cash and due from banks
|
$
|
43,429
|
$
|
48,357
|
||||
Federal funds sold and other short term investments
|
607,170
|
1,171,113
|
||||||
Total cash and cash equivalents
|
650,599
|
1,219,470
|
||||||
Securities available for sale
|
481,513
|
407,713
|
||||||
Held to maturity securities ($7,580 and $10,695 fair value at December 31, 2022 and 2021, respectively)
|
7,707
|
9,923
|
||||||
Federal Home Loan Bank stock
|
5,797
|
5,604
|
||||||
Loans, net of deferred net costs
|
4,733,201
|
4,438,779
|
||||||
Less: Allowance for credit loss on loans
|
46,032
|
44,267
|
||||||
Net loans
|
4,687,169
|
4,394,512
|
||||||
Bank premises and equipment, net
|
32,556
|
33,027
|
||||||
Operating lease right-of-use assets
|
44,727
|
48,090
|
||||||
Other assets
|
89,984
|
78,207
|
||||||
|
||||||||
Total assets
|
$
|
6,000,052
|
$
|
6,196,546
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Demand
|
$
|
838,147
|
$
|
794,878
|
||||
Savings accounts
|
1,521,473
|
1,504,554
|
||||||
Interest-bearing checking
|
1,183,321
|
1,191,304
|
||||||
Money market deposit accounts
|
621,106
|
782,079
|
||||||
Time accounts
|
1,028,763
|
995,314
|
||||||
Total deposits
|
5,192,810
|
5,268,129
|
||||||
Short-term borrowings
|
122,700
|
244,686
|
||||||
Operating lease liabilities
|
48,980
|
52,720
|
||||||
Accrued expenses and other liabilities
|
35,575
|
29,883
|
||||||
|
||||||||
Total liabilities
|
5,400,065
|
5,595,418
|
||||||
|
||||||||
Commitments and contingent liabilities
|
||||||||
|
||||||||
SHAREHOLDERS’ EQUITY:
|
||||||||
|
||||||||
Capital stock: $1.00
par value; 30,000,000 shares authorized, 20,058,142 and 20,045,684 shares issued and 19,024,433 and 19,219,989 shares outstanding at December 31, 2022 and 2021,
respectively
|
20,058
|
20,046
|
||||||
Surplus
|
257,078
|
256,661
|
||||||
Undivided profits
|
393,831
|
349,056
|
||||||
Accumulated other comprehensive (loss) income, net of tax
|
(27,194
|
)
|
12,147
|
|||||
Treasury stock: 1,033,709
and 825,695 shares, at cost, at December 31, 2022 and 2021, respectively
|
(43,786
|
)
|
(36,782
|
)
|
||||
Total shareholders’ equity
|
599,987
|
601,128
|
||||||
Total liabilities and shareholders’ equity
|
$
|
6,000,052
|
$ |
6,196,546
|
|
Capital
Stock
|
Surplus
|
Undivided
Profits
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Beginning balance, January 1, 2020 (1)
|
$
|
20,041
|
$
|
256,591
|
$
|
288,067
|
$
|
4,461
|
$
|
(30,903
|
)
|
$
|
538,257
|
|||||||||||
Net income
|
-
|
-
|
52,452
|
-
|
-
|
52,452
|
||||||||||||||||||
Change in other comprehensive income (loss), net of tax
|
-
|
-
|
-
|
7,475
|
-
|
7,475
|
||||||||||||||||||
Cash dividend declared, $1.3625
per share (1)
|
-
|
-
|
(26,545
|
)
|
-
|
-
|
(26,545
|
)
|
||||||||||||||||
Purchase of treasury stock (97,800 shares) (2)
|
-
|
-
|
-
|
-
|
(3,493
|
)
|
(3,493
|
)
|
||||||||||||||||
Stock based compensation expense
|
-
|
15
|
-
|
-
|
-
|
15
|
||||||||||||||||||
Ending balance, December 31, 2020
|
$
|
20,041
|
$
|
256,606
|
$
|
313,974
|
$
|
11,936
|
$
|
(34,396
|
)
|
$
|
568,161
|
|||||||||||
|
||||||||||||||||||||||||
Net income
|
-
|
-
|
61,519
|
-
|
-
|
61,519
|
||||||||||||||||||
Change in other comprehensive income (loss), net of tax
|
-
|
-
|
-
|
211
|
-
|
211
|
||||||||||||||||||
Cash used to settle fractional shares in the Reverse Stock Split
|
(5 | ) | (195 | ) | - | - | - | (200 | ) | |||||||||||||||
Stock options exercises (9,923
shares issued) (2)
|
10 | 250 | - | - | - | 260 | ||||||||||||||||||
Cash dividend declared, $1.3719
per share (1)
|
-
|
-
|
(26,437
|
)
|
-
|
-
|
(26,437
|
)
|
||||||||||||||||
Purchase of treasury stock (71,260 shares) (2)
|
-
|
-
|
-
|
-
|
(2,386
|
)
|
(2,386
|
)
|
||||||||||||||||
Ending balance, December 31, 2021
|
$
|
20,046
|
$
|
256,661
|
$
|
349,056
|
$
|
12,147
|
$
|
(36,782
|
)
|
$
|
601,128
|
|||||||||||
|
||||||||||||||||||||||||
Cumulative impact of adoption of ASU 2016-13
|
(3,470 | ) | (3,470 | ) | ||||||||||||||||||||
Balance, January 1, 2022 as adjusted for impact of adoption of ASU 2016-13
|
$ | 20,046 | $ | 256,661 | $ | 345,586 | $ | 12,147 | $ | (36,782 | ) | $ | 597,658 | |||||||||||
Net income
|
-
|
-
|
75,234
|
-
|
-
|
75,234
|
||||||||||||||||||
Change in other comprehensive (loss) income, net of tax
|
-
|
-
|
-
|
(39,341
|
)
|
-
|
(39,341
|
)
|
||||||||||||||||
Stock options exercises (12,458
shares issued) |
12 | 417 | - | - | - | 429 | ||||||||||||||||||
Cash dividend declared, $1.4100
per share
|
-
|
-
|
(26,989
|
)
|
-
|
-
|
(26,989
|
)
|
||||||||||||||||
Purchase of treasury stock (208,014 shares)
|
-
|
-
|
-
|
-
|
(7,004
|
)
|
(7,004
|
)
|
||||||||||||||||
Ending balance, December 31, 2022
|
$
|
20,058
|
$
|
257,078
|
$
|
393,831
|
$
|
(27,194
|
)
|
$
|
(43,786
|
)
|
$
|
599,987
|
(1)
|
All periods presented have been adjusted for the
reverse stock split which occurred on May 28, 2021. |
(2)
|
Share amounts and per share amounts have been adjusted for all periods presented for the
reverse stock split which occurred on May 28, 2021. |
|
Years ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
75,234
|
$ |
61,519
|
$ |
52,452
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
4,101
|
4,219
|
4,040
|
|||||||||
Amortization of right-of-use asset
|
6,452
|
6,383
|
6,138
|
|||||||||
Net gain on sale of other real estate owned
|
(122
|
)
|
(216
|
)
|
(347
|
)
|
||||||
Writedown of other real estate owned
|
68
|
121
|
120
|
|||||||||
(Credit) Provision for credit losses
|
(341
|
)
|
(5,450
|
)
|
5,600
|
|||||||
Deferred tax expense (benefit)
|
4,114
|
(238
|
)
|
(1,067
|
)
|
|||||||
Net amortization of securities
|
2,266
|
3,955
|
3,883
|
|||||||||
Stock based compensation expense
|
-
|
-
|
15
|
|||||||||
Net gain on sale of bank premises and equipment
|
(315
|
)
|
-
|
-
|
||||||||
Net gain on securities transactions
|
-
|
-
|
(1,155
|
)
|
||||||||
Decrease (Increase) in taxes receivable
|
4,906
|
(148
|
)
|
(1,243
|
)
|
|||||||
(Increase) Decrease in interest receivable
|
(2,393
|
)
|
932
|
884
|
||||||||
Increase (Decrease) in interest payable
|
439
|
(311
|
)
|
(985
|
)
|
|||||||
Increase in other assets
|
(8,432
|
)
|
(10,247
|
)
|
(2,625
|
)
|
||||||
Decrease in operating lease liabilities
|
(6,829
|
)
|
(6,652
|
)
|
(6,317
|
)
|
||||||
(Decrease) Increase in accrued expenses and other liabilities
|
(522
|
)
|
1,498
|
2,764
|
||||||||
Total adjustments
|
3,392
|
(6,154
|
)
|
9,705
|
||||||||
Net cash provided by operating activities
|
78,626
|
55,365
|
62,157
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from sales, paydowns and calls of securities available for sale
|
68,954
|
148,609
|
276,843
|
|||||||||
Purchases of securities available for sale
|
(203,516
|
)
|
(139,962
|
)
|
(145,339
|
)
|
||||||
Proceeds from maturities of securities available for sale
|
15,057
|
9,162
|
10,007
|
|||||||||
Proceeds from calls and maturities of held to maturity securities
|
2,142
|
3,780
|
4,627
|
|||||||||
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock
|
(193
|
)
|
(98
|
)
|
(380
|
)
|
||||||
Proceeds from redemptions of Federal Reserve Bank stock
|
-
|
-
|
4,057
|
|||||||||
Net increase in loans
|
(296,343
|
)
|
(194,677
|
)
|
(183,320
|
)
|
||||||
Proceeds from dispositions of other real estate owned
|
588
|
764
|
1,989
|
|||||||||
Proceeds from dispositions of bank premises and equipment
|
470
|
6
|
-
|
|||||||||
Purchases of bank premises and equipment
|
(3,785
|
)
|
(2,840
|
)
|
(3,830
|
)
|
||||||
Net cash used in investing activities
|
(416,626
|
)
|
(175,256
|
)
|
(35,346
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Net (decrease) increase in deposits
|
(75,319
|
)
|
230,936
|
587,177
|
||||||||
Net change in short-term borrowings
|
(121,986
|
)
|
29,931
|
66,089
|
||||||||
Proceeds from exercise of stock options and related
tax benefits
|
429
|
260
|
-
|
|||||||||
Cash used to settle fractional shares in the Reverse Stock Split
|
- | (200 | ) | - | ||||||||
Purchases of treasury stock
|
(7,004
|
)
|
(2,386
|
)
|
(3,493
|
)
|
||||||
Dividends paid
|
(26,991
|
)
|
(26,279
|
)
|
(26,331
|
)
|
||||||
Net cash (used in) provided by financing activities
|
(230,871
|
)
|
232,262
|
623,442
|
||||||||
Net (decrease) increase in cash and cash equivalents
|
(568,871
|
)
|
112,371
|
650,253
|
||||||||
Cash and cash equivalents at beginning of period
|
1,219,470
|
1,107,099
|
456,846
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
650,599
|
$ |
1,219,470
|
$ |
1,107,099
|
(1) |
Basis of Presentation
|
(in
thousands) |
December 31,
2021 Pre-CECL
Adoption
|
Impact of
Adoption
|
January 1, 2022
Post-CECL
Adoption
|
|||||||||
Assets:
|
||||||||||||
Allowance for credit losses on loans
|
$
|
44,267
|
$
|
2,353
|
$
|
46,620
|
||||||
Allowance for credit losses on securities
|
-
|
-
|
-
|
|||||||||
Liabilities and shareholders’ equity:
|
||||||||||||
Other liabilities (ACL unfunded loan commitments)
|
18
|
2,335
|
2,353
|
|||||||||
Tax Effect, net (included in other assets)
|
-
|
(1,218
|
)
|
-
|
||||||||
Total
|
44,285 | 3,470 | 48,973 | |||||||||
Undivided Profits
|
$
|
349,056
|
$
|
(3,470
|
)
|
$
|
345,586
|
(2) |
Balances at Other Banks
|
(3) |
Investment Securities
|
(a) |
Securities available for sale
|
(dollars in thousands)
|
December 31, 2022
|
|||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
124,123
|
$ |
1
|
$ |
5,937
|
$ |
118,187
|
||||||||
State and political subdivisions
|
34
|
-
|
-
|
34
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
291,431
|
34
|
31,149
|
260,316
|
||||||||||||
Corporate bonds
|
85,641
|
-
|
4,295
|
81,346
|
||||||||||||
Small Business Administration - guaranteed participation securities
|
23,115
|
-
|
2,138
|
20,977
|
||||||||||||
Other
|
686
|
-
|
33
|
653
|
||||||||||||
Total securities available for sale
|
$
|
525,030
|
$ |
35
|
$ |
43,552
|
$ |
481,513
|
(dollars in thousands)
|
December 31, 2021
|
|||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
59,976
|
$ |
-
|
$ |
797
|
$ |
59,179
|
||||||||
State and political subdivisions
|
41
|
-
|
-
|
41
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
269,907
|
3,367
|
2,476
|
270,798
|
||||||||||||
Corporate bonds
|
45,805
|
157
|
625
|
45,337
|
||||||||||||
Small Business Administration - guaranteed participation securities
|
31,303
|
371
|
-
|
31,674
|
||||||||||||
Other
|
685
|
-
|
1
|
684
|
||||||||||||
Total securities available for sale
|
$ |
407,717
|
$ |
3,895
|
$ |
3,899
|
$ |
407,713
|
(dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
||||||
Due in one year or less
|
$
|
5,044
|
$ |
5,019
|
||||
Due in after one year through five years
|
205,440
|
195,201
|
||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
291,431
|
260,316
|
||||||
Small Business Administration - guaranteed participation securities
|
23,115
|
20,977
|
||||||
|
$
|
525,030
|
$ |
481,513
|
(dollars in thousands)
|
December 31, 2022
|
|||||||||||||||||||||||
|
Less than
12 months
|
12 months
or more
|
Total
|
|||||||||||||||||||||
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
||||||||||||||||||
U.S. government sponsored enterprises
|
$
|
57,849
|
$ |
1,290
|
$ |
55,337
|
$ |
4,647
|
$ |
113,186
|
$ |
5,937
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
164,772
|
13,010
|
93,009
|
18,139
|
257,781
|
31,149
|
||||||||||||||||||
Corporate bonds
|
52,805
|
2,395
|
28,542
|
1,900
|
81,347
|
4,295
|
||||||||||||||||||
Other |
49 | 1 | 568 | 32 | 617 | 33 | ||||||||||||||||||
Small Business Administration - guaranteed participation securities | 802 | 71 | 20,175 | 2,067 | 20,977 | 2,138 | ||||||||||||||||||
Total
|
$
|
276,277
|
$ |
16,767
|
$ |
197,631
|
$ |
26,785
|
$ |
473,908
|
$ |
43,552
|
(dollars in thousands)
|
December 31, 2021
|
|||||||||||||||||||||||
|
Less than
12 months
|
12 months
or more
|
Total
|
|||||||||||||||||||||
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
||||||||||||||||||
U.S. government sponsored enterprises
|
$
|
49,279
|
$ |
697
|
$ |
9,900
|
$ |
100
|
$ |
59,179
|
$ |
797
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
93,447
|
1,888
|
22,098
|
588
|
115,545
|
2,476
|
||||||||||||||||||
Corporate bonds
|
15,670
|
171
|
14,546
|
454
|
30,216
|
625
|
||||||||||||||||||
Other
|
648 | 1 | - | - | 648 | 1 | ||||||||||||||||||
Total
|
$
|
159,044
|
$ |
2,757
|
$ |
46,544
|
$ |
1,142
|
$ |
205,588
|
$ |
3,899
|
|
Years ended December 31,
|
|||||||||||
(dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Proceeds from sales
|
$
|
-
|
$
|
-
|
$
|
29,219
|
||||||
Proceeds from calls/paydowns
|
68,954
|
148,609
|
247,624
|
|||||||||
Proceeds from maturities
|
15,057
|
9,162
|
10,007
|
|||||||||
Gross realized gains
|
-
|
-
|
1,155
|
|||||||||
Gross realized losses
|
-
|
-
|
-
|
(b)
|
Held to maturity securities
|
|
December 31, 2022
|
|||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Gross
Unrecognized
Gains
|
Gross
Unrecognized
Losses
|
Fair
Value
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
7,707
|
$
|
90
|
$ |
217
|
$ |
7,580
|
||||||||
Total held to maturity
|
$
|
7,707
|
$ |
90
|
$ |
217
|
$ |
7,580
|
|
December 31, 2021
|
|||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Gross
Unrecognized
Gains
|
Gross
Unrecognized
Losses
|
Fair
Value
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
9,923
|
$ |
773
|
$ |
1
|
$ |
10,695
|
||||||||
Total held to maturity
|
$
|
9,923
|
$ |
773
|
$ |
1
|
$ |
10,695
|
(dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
7,707
|
7,580
|
|||||
|
$
|
7,707
|
7,580
|
(dollars in thousands)
|
December 31, 2022
|
|||||||||||||||||||||||
|
Less than
12 months
|
12 months
or more
|
Total
|
|||||||||||||||||||||
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
3,327
|
206
|
258
|
11
|
3,585
|
217
|
|||||||||||||||||
Total
|
$
|
3,327
|
206
|
258
|
11
|
3,585
|
217
|
(dollars in thousands)
|
December 31, 2021
|
|||||||||||||||||||||||
|
Less than
12 months
|
12 months
or more
|
Total
|
|||||||||||||||||||||
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
Fair
Value
|
Gross
Unreal.
Loss
|
||||||||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
$
|
442
|
1
|
-
|
-
|
442
|
1
|
|||||||||||||||||
Total
|
$
|
442
|
1
|
-
|
-
|
442
|
1
|
(c) |
Concentrations
|
(dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
||||||
Federal National Mortgage Association
|
$
|
184,850
|
$ |
98,072
|
||||
Federal Home Loan Mortgage Corporation
|
|
107,800
|
165,309
|
(d) |
Other-Than-Temporary-Impairment
|
(4) |
Loan Portfolio and Allowance for Credit Losses
|
|
December 31, 2022
|
|||||||||||
(dollars in thousands)
|
New York and
other states*
|
Florida
|
Total
|
|||||||||
Commercial:
|
|
|
|
|||||||||
Commercial real estate
|
$
|
177,371
|
$ |
32,551
|
$ |
209,922
|
||||||
Other
|
20,221
|
868
|
21,089
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
|
|
|
|||||||||
First mortgages
|
2,776,989
|
1,369,913
|
4,146,902
|
|||||||||
Home equity loans
|
43,999
|
12,550
|
56,549
|
|||||||||
Home equity lines of credit
|
191,926
|
94,506
|
286,432
|
|||||||||
Installment
|
9,408
|
2,899
|
12,307
|
|||||||||
Total loans, net
|
$
|
3,219,914
|
$ |
1,513,287
|
|
4,733,201
|
||||||
Less: Allowance for credit losses
|
|
|
46,032
|
|||||||||
Net loans
|
|
|
$
|
4,687,169
|
|
December 31, 2021
|
|||||||||||
(dollars in thousands)
|
New York and
other states*
|
Florida
|
Total
|
|||||||||
Commercial:
|
|
|
|
|||||||||
Commercial real estate
|
$
|
147,063
|
$ |
21,653
|
$ |
168,716
|
||||||
Other
|
30,889
|
595
|
31,484
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
|
|
|
|||||||||
First mortgages
|
2,723,734
|
1,212,568
|
3,936,302
|
|||||||||
Home equity loans
|
48,190
|
13,695
|
61,885
|
|||||||||
Home equity lines of credit
|
175,134
|
55,842
|
230,976
|
|||||||||
Installment
|
7,368
|
2,048
|
9,416
|
|||||||||
Total loans, net
|
$
|
3,132,378
|
$ |
1,306,401
|
4,438,779
|
|||||||
Less: Allowance for loan losses
|
|
|
44,267
|
|||||||||
Net loans
|
|
|
$
|
4,394,512
|
(dollars in thousands)
|
December 31, 2021
Pre-Adoption
Balance
|
Impact of Adoption
|
January 1, 2022
Post CECL
Adoption
|
|||||||||
|
Total
|
Total
|
||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
3,121
|
(1,100
|
)
|
2,021
|
|||||||
Other
|
14
|
114
|
128
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
37,249
|
1,703
|
38,952
|
|||||||||
Home equity loans
|
583
|
262
|
845
|
|||||||||
Home equity lines of credit
|
2,857
|
1,752
|
4,609
|
|||||||||
Installment
|
443
|
(378
|
)
|
65
|
||||||||
Total Allowance
|
$
|
44,267
|
2,353
|
46,620
|
|
For the year ended December 31, 2022 | ||||||||||||||||
(dollars in thousands)
|
Commercial
|
Real Estate
Mortgage-
1 to 4 Family
|
Installment
|
Total
|
||||||||||||
Balance at beginning of period
|
$
|
3,135
|
$
|
40,689
|
$
|
443
|
$
|
44,267
|
||||||||
Impact of ASU 2016-13, Current
Expected Credit Loss (CECL)
|
(986
|
)
|
3,717
|
(378
|
)
|
2,353
|
||||||||||
Balance as of January 1, 2022 as
adjusted for ASU 2016-13
|
2,149
|
44,406
|
65
|
46,620
|
||||||||||||
Loans charged off: | ||||||||||||||||
New York and other states*
|
40
|
24
|
87
|
151
|
||||||||||||
Florida
|
-
|
-
|
1
|
1
|
||||||||||||
Total loan chargeoffs
|
40
|
24
|
88
|
152
|
||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||
New York and other states*
|
4
|
450
|
7
|
461
|
||||||||||||
Florida
|
-
|
-
|
3
|
3
|
||||||||||||
Total recoveries
|
4
|
450
|
10
|
464
|
||||||||||||
Net loans (recoveries) charged off
|
36
|
(426
|
)
|
78
|
(312
|
)
|
||||||||||
(Credit) provision for credit losses
|
483
|
(1,561
|
)
|
178
|
(900
|
)
|
||||||||||
Balance at end of period
|
$
|
2,596
|
$
|
43,271
|
$
|
165
|
$
|
46,032
|
For the year ended December 31, 2021 | ||||||||||||||||
(dollars in thousands)
|
Commercial
|
Real Estate
Mortgage- 1 to 4 Family
|
Installment
|
Total
|
||||||||||||
Balance at beginning of period
|
$
|
4,140
|
$
|
44,950
|
$
|
505
|
$
|
49,595
|
||||||||
Loans charged off: | ||||||||||||||||
New York and other states*
|
30
|
339
|
58
|
427
|
||||||||||||
Florida
|
-
|
1
|
2
|
3
|
||||||||||||
Total loan chargeoffs
|
30
|
340
|
60
|
430
|
||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||
New York and other states*
|
32
|
464
|
54
|
550
|
||||||||||||
Florida
|
-
|
2
|
-
|
2
|
||||||||||||
Total recoveries
|
32
|
466
|
54
|
552
|
||||||||||||
Net loan recoveries
|
(2
|
)
|
(126
|
)
|
6
|
(122
|
)
|
|||||||||
(Credit) provision for loan losses
|
(1,007
|
)
|
(4,387
|
)
|
(56
|
)
|
(5,450
|
)
|
||||||||
Balance at end of period
|
$
|
3,135
|
$
|
40,689
|
$
|
443
|
$
|
44,267
|
For the year ended December 31, 2020
|
||||||||||||||||
Real Estate
|
||||||||||||||||
Mortgage-
|
||||||||||||||||
(dollars in thousands)
|
Commercial
|
1 to 4 Family
|
Installment
|
Total
|
||||||||||||
Balance at beginning of period
|
$
|
3,999
|
39,748
|
570
|
44,317
|
|||||||||||
Loans charged off:
|
||||||||||||||||
New York and other states*
|
36
|
404
|
187
|
627
|
||||||||||||
Florida
|
-
|
-
|
34
|
34
|
||||||||||||
Total loan chargeoffs
|
36
|
404
|
221
|
661
|
||||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||
New York and other states*
|
10
|
314
|
12
|
336
|
||||||||||||
Florida
|
-
|
3
|
-
|
3
|
||||||||||||
Total recoveries
|
10
|
317
|
12
|
339
|
||||||||||||
Net loans charged off
|
26
|
87
|
209
|
322
|
||||||||||||
Provision for loan losses
|
167
|
5,289
|
144
|
5,600
|
||||||||||||
Balance at end of period
|
$
|
4,140
|
44,950
|
505
|
49,595
|
|
December 31, 2022
|
|||||||||||||||
(dollars in thousands)
|
Commercial
Loans
|
1-to-4 Family
Residential
Real Estate
|
Installment
Loans
|
Total
|
||||||||||||
|
||||||||||||||||
Allowance for credit losses on loans:
|
||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
-
|
-
|
-
|
|||||||||||
Collectively evaluated for impairment
|
2,596
|
43,271
|
165
|
46,032
|
||||||||||||
|
||||||||||||||||
Total ending allowance balance
|
$
|
2,596
|
43,271
|
165
|
46,032
|
|||||||||||
|
||||||||||||||||
Loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
646
|
24,967
|
82
|
25,695
|
|||||||||||
Collectively evaluated for impairment
|
230,365
|
4,464,916
|
12,225
|
4,707,506
|
||||||||||||
|
||||||||||||||||
Total ending loans balance
|
$
|
231,011
|
4,489,883
|
12,307
|
4,733,201
|
|
December 31, 2021
|
|||||||||||||||
(dollars in thousands)
|
Commercial
Loans
|
1-to-4 Family
Residential
Real Estate
|
Installment
Loans
|
Total
|
||||||||||||
|
||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
-
|
-
|
-
|
|||||||||||
Collectively evaluated for impairment
|
3,135
|
40,689
|
443
|
44,267
|
||||||||||||
|
||||||||||||||||
Total ending allowance balance
|
|
3,135
|
40,689
|
443
|
44,267
|
|||||||||||
|
||||||||||||||||
Loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
232
|
18,272
|
-
|
18,504
|
|||||||||||
Collectively evaluated for impairment
|
199,968
|
4,210,891
|
9,416
|
4,420,275
|
||||||||||||
|
||||||||||||||||
Total ending loans balance
|
$
|
200,200
|
4,229,163
|
9,416
|
4,438,779
|
|
December 31, 2021
|
|||||||||||||||
New York and other states*:
(dollars in thousands)
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
YTD Avg
Recorded
Investment
|
||||||||||||
|
||||||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
$
|
187
|
279
|
-
|
1,154
|
|||||||||||
Other
|
45
|
45
|
-
|
107
|
||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||
First mortgages
|
13,687
|
13,875
|
-
|
14,072
|
||||||||||||
Home equity loans
|
161
|
161
|
-
|
235
|
||||||||||||
Home equity lines of credit
|
1,852
|
1,939
|
-
|
2,256
|
||||||||||||
|
||||||||||||||||
Total
|
$ |
15,932
|
16,299
|
-
|
17,824
|
Florida:
(dollars in thousands)
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
YTD Avg
Recorded
Investment
|
||||||||||||
|
||||||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
$ |
-
|
-
|
-
|
105
|
|||||||||||
Other
|
-
|
-
|
-
|
-
|
||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||
First mortgages
|
2,368
|
2,368
|
-
|
2,562
|
||||||||||||
Home equity loans
|
-
|
-
|
-
|
16
|
||||||||||||
Home equity lines of credit
|
204
|
204
|
-
|
246
|
||||||||||||
|
||||||||||||||||
Total
|
$
|
2,572
|
2,572
|
-
|
2,929
|
Total:
(dollars in thousands)
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
YTD Avg
Recorded
Investment
|
||||||||||||
|
||||||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
$
|
187
|
279
|
-
|
1,259
|
|||||||||||
Other
|
45
|
45
|
-
|
107
|
||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||
First mortgages
|
16,055
|
16,243
|
-
|
16,634
|
||||||||||||
Home equity loans
|
161
|
161
|
-
|
251
|
||||||||||||
Home equity lines of credit
|
2,056
|
2,143
|
-
|
2,502
|
||||||||||||
|
||||||||||||||||
Total
|
$
|
18,504
|
18,871
|
-
|
20,753
|
(In thousands)
|
For the year ended
December 31, 2022
|
|||
|
||||
Balance at January 1, 2022
|
$
|
18 | ||
Impact of Adopting CECL
|
2,335 | |||
Adjusted Balance at January 1, 2022
|
2,353 | |||
Provision for credit losses
|
559 | |||
Balance at December 31, 2022
|
$
|
2,912 |
Loan Credit Quality
|
||||||||||||||||||||||||||||||||||||
(in thousands)
|
December 31, 2022
|
|||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||||||
Commercial :
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving Loans Amortized Cost Basis
|
Revolving Loan Converted to Term
|
Total
|
|||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
79,430
|
$
|
29,991
|
$
|
18,708
|
$
|
22,790
|
$
|
16,598
|
$
|
32,666
|
$
|
8,022
|
$
|
-
|
$
|
208,205
|
||||||||||||||||||
Special Mention
|
-
|
-
|
62
|
-
|
243
|
-
|
-
|
-
|
305
|
|||||||||||||||||||||||||||
Substandard
|
-
|
-
|
113
|
-
|
128
|
1,171
|
-
|
-
|
1,412
|
|||||||||||||||||||||||||||
Total Commercial Loans
|
$
|
79,430
|
$
|
29,991
|
$
|
18,883
|
$
|
22,790
|
$
|
16,969
|
$
|
33,837
|
$
|
8,022
|
$
|
-
|
$
|
209,922
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period Gross writeoffs
|
$
|
-
|
-
|
-
|
-
|
-
|
40
|
-
|
-
|
$
|
40
|
|||||||||||||||||||||||||
$
|
-
|
-
|
-
|
-
|
-
|
40
|
-
|
-
|
$
|
40
|
||||||||||||||||||||||||||
Commercial Other:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
2,972
|
$
|
2,848
|
$
|
2,273
|
$
|
590
|
$
|
674
|
$
|
2,348
|
$
|
8,908
|
-
|
$
|
20,613
|
|||||||||||||||||||
Special mention
|
-
|
-
|
-
|
-
|
-
|
-
|
39
|
-
|
39
|
|||||||||||||||||||||||||||
Substandard
|
-
|
339
|
-
|
-
|
-
|
98
|
-
|
-
|
437
|
|||||||||||||||||||||||||||
Total Commercial Real Estate Loans
|
$
|
2,972
|
$
|
3,187
|
$
|
2,273
|
$
|
590
|
$
|
674
|
$
|
2,446
|
$
|
8,947
|
$
|
-
|
$
|
21,089
|
||||||||||||||||||
Other Commercial Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period Gross writeoffs
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
$
|
-
|
||||||||||||||||||||||||||
Residential First Mortgage:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
557,981
|
$
|
933,754
|
$
|
784,511
|
$
|
368,137
|
$
|
257,926
|
$
|
1,228,776
|
$
|
1,472
|
$
|
-
|
$
|
4,132,557
|
||||||||||||||||||
Nonperforming
|
-
|
496
|
81
|
844
|
351
|
12,573
|
-
|
-
|
14,345
|
|||||||||||||||||||||||||||
Total First Mortgage:
|
$
|
557,981
|
$
|
934,250
|
$
|
784,592
|
$
|
368,981
|
$
|
258,277
|
$
|
1,241,349
|
$
|
1,472
|
$
|
-
|
$
|
4,146,902
|
||||||||||||||||||
Residential First
Mortgage Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period Gross writeoffs
|
$
|
-
|
-
|
-
|
-
|
-
|
5
|
-
|
-
|
$
|
5
|
|||||||||||||||||||||||||
$
|
-
|
-
|
-
|
-
|
-
|
5
|
-
|
-
|
$
|
5
|
||||||||||||||||||||||||||
Home Equity Lines:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
6,863
|
$
|
9,124
|
$
|
6,322
|
$
|
7,588
|
$
|
5,240
|
$
|
21,217
|
$
|
-
|
$
|
-
|
$
|
56,354
|
||||||||||||||||||
Nonperforming
|
-
|
-
|
-
|
-
|
66
|
129
|
-
|
-
|
195
|
|||||||||||||||||||||||||||
Total Home Equity Lines:
|
$
|
6,863
|
$
|
9,124
|
$
|
6,322
|
$
|
7,588
|
$
|
5,306
|
$
|
21,346
|
$
|
-
|
$
|
-
|
$
|
56,549
|
||||||||||||||||||
Home Equity Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period Gross writeoffs
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||||
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||||||||||
Home Equity Lines of Credit:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
1,369
|
$
|
1,246
|
$
|
740
|
$
|
52
|
$
|
100
|
$
|
18,377
|
$
|
262,244
|
$
|
-
|
$
|
284,128
|
||||||||||||||||||
Nonperforming
|
-
|
7
|
-
|
-
|
-
|
2,111
|
186
|
-
|
2,304
|
|||||||||||||||||||||||||||
Total Home Equity Credit Lines:
|
$
|
1,369
|
$
|
1,253
|
$
|
740
|
$
|
52
|
$
|
100
|
$
|
20,488
|
$
|
262,430
|
$
|
-
|
$
|
286,432
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Home Equity Lines of Credit:
|
||||||||||||||||||||||||||||||||||||
Current-period Gross writeoffs
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
19
|
$
|
-
|
$
|
-
|
$
|
19
|
||||||||||||||||||
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
19
|
$
|
-
|
$
|
-
|
$
|
19
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Installments:
|
||||||||||||||||||||||||||||||||||||
Risk rating
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
6,385
|
$
|
2,495
|
$
|
805
|
$
|
709
|
$
|
374
|
$
|
308
|
$
|
1,125
|
$
|
-
|
$
|
12,201
|
||||||||||||||||||
Nonperforming
|
20
|
17
|
-
|
65
|
-
|
1
|
3
|
-
|
106
|
|||||||||||||||||||||||||||
Total Installments
|
$
|
6,405
|
$
|
2,512
|
$
|
805
|
$
|
774
|
$
|
374
|
$
|
309
|
$
|
1,128
|
$
|
-
|
$
|
12,307
|
||||||||||||||||||
Installments Loans:
|
||||||||||||||||||||||||||||||||||||
Current-period Gross writeoffs
|
$
|
1
|
$
|
47
|
$
|
22
|
$
|
7
|
$
|
2
|
$
|
9
|
$
|
-
|
$
|
-
|
$
|
88
|
||||||||||||||||||
$
|
1
|
$
|
47
|
$
|
22
|
$
|
7
|
$
|
2
|
$
|
9
|
$
|
-
|
$
|
-
|
$
|
88
|
|
December 31, 2021 | |||||||||||
New York and other states*: |
||||||||||||
(dollars in thousands) |
Pass
|
Classified
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
145,500
|
1,563
|
147,063
|
||||||||
Other
|
30,726
|
163
|
30,889
|
|||||||||
$
|
176,226
|
1,726
|
177,952
|
Florida: |
||||||||||||
(dollars in thousands) |
Pass
|
Classified
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
21,113
|
540
|
21,653
|
||||||||
Other
|
595
|
-
|
595
|
|||||||||
$
|
21,708
|
540
|
22,248
|
Total: |
||||||||||||
(dollars in thousands) |
Pass
|
Classified
|
Total
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
166,613
|
2,103
|
168,716
|
||||||||
Other
|
31,321
|
163
|
31,484
|
|||||||||
$
|
197,934
|
2,266
|
200,200
|
|
December 31, 2022
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
New York and other states*:
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 +
Days
Past Due
|
Total
30+ days
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
-
|
161
|
161
|
177,210
|
177,371
|
|||||||||||||||||
Other
|
18
|
-
|
20
|
38
|
20,183
|
20,221
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
4,262
|
921
|
7,203
|
12,386
|
2,764,603
|
2,776,989
|
||||||||||||||||||
Home equity loans
|
283
|
-
|
67
|
350
|
43,649
|
43,999
|
||||||||||||||||||
Home equity lines of credit
|
978
|
-
|
591
|
1,569
|
190,357
|
191,926
|
||||||||||||||||||
Installment
|
78
|
4
|
23
|
105
|
9,303
|
9,408
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
5,619
|
925
|
8,065
|
14,609
|
3,205,305
|
3,219,914
|
Florida:
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 +
Days
Past Due
|
Total
30+ days
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
-
|
-
|
-
|
32,551
|
32,551
|
|||||||||||||||||
Other
|
-
|
-
|
314
|
314
|
554
|
868
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
1,183
|
243
|
1,404
|
2,830
|
1,367,083
|
1,369,913
|
||||||||||||||||||
Home equity loans
|
51
|
-
|
-
|
51
|
12,499
|
12,550
|
||||||||||||||||||
Home equity lines of credit
|
224
|
-
|
-
|
224
|
94,282
|
94,506
|
||||||||||||||||||
Installment
|
6
|
-
|
83
|
89
|
2,810
|
2,899
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
1,464
|
243
|
1,801
|
3,508
|
1,509,779
|
1,513,287
|
Total:
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 +
Days
Past Due
|
Total
30+ days
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
-
|
161
|
161
|
209,761
|
209,922
|
|||||||||||||||||
Other
|
18
|
-
|
334
|
352
|
20,737
|
21,089
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
5,445
|
1,164
|
8,607
|
15,216
|
4,131,686
|
4,146,902
|
||||||||||||||||||
Home equity loans
|
334
|
-
|
67
|
401
|
56,148
|
56,549
|
||||||||||||||||||
Home equity lines of credit
|
1,202
|
-
|
591
|
1,793
|
284,639
|
286,432
|
||||||||||||||||||
Installment
|
84
|
4
|
106
|
194
|
12,113
|
12,307
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
7,083
|
1,168
|
9,866
|
18,117
|
4,715,084
|
4,733,201
|
|
December 31, 2021
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
New York and other states*:
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 +
Days
Past Due
|
Total
30+ days
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
233
|
45
|
278
|
146,785
|
147,063
|
|||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
30,889
|
30,889
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
1,303
|
239
|
9,867
|
11,409
|
2,712,325
|
2,723,734
|
||||||||||||||||||
Home equity loans
|
136
|
-
|
224
|
360
|
47,830
|
48,190
|
||||||||||||||||||
Home equity lines of credit
|
355
|
458
|
911
|
1,724
|
173,410
|
175,134
|
||||||||||||||||||
Installment
|
27
|
5
|
4
|
36
|
7,332
|
7,368
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
1,821
|
935
|
11,051
|
13,807
|
3,118,571
|
3,132,378
|
Florida:
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 +
Days
Past Due
|
Total
30+ days
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
-
|
-
|
-
|
21,653
|
21,653
|
|||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
595
|
595
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
869
|
180
|
1,146
|
2,195
|
1,210,373
|
1,212,568
|
||||||||||||||||||
Home equity loans
|
-
|
45
|
-
|
45
|
13,650
|
13,695
|
||||||||||||||||||
Home equity lines of credit
|
-
|
89
|
-
|
89
|
55,753
|
55,842
|
||||||||||||||||||
Installment
|
18
|
-
|
5
|
23
|
2,025
|
2,048
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
887
|
314
|
1,151
|
2,352
|
1,304,049
|
1,306,401
|
Total:
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 +
Days
Past Due
|
Total
30+ days
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
233
|
45
|
278
|
168,438
|
168,716
|
|||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
31,484
|
31,484
|
||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||
First mortgages
|
2,172
|
419
|
11,013
|
13,604
|
3,922,698
|
3,936,302
|
||||||||||||||||||
Home equity loans
|
136
|
45
|
224
|
405
|
61,480
|
61,885
|
||||||||||||||||||
Home equity lines of credit
|
355
|
547
|
911
|
1,813
|
229,163
|
230,976
|
||||||||||||||||||
Installment
|
45
|
5
|
9
|
59
|
9,357
|
9,416
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
2,708
|
1,249
|
12,202
|
16,159
|
4,422,620
|
4,438,779
|
|
December 31, 2022
|
|||||||||||
(dollars in thousands)
|
New York and
other states*
|
Florida
|
Total
|
|||||||||
Loans in non-accrual status:
|
||||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
199
|
$ |
-
|
$ |
199
|
||||||
Other
|
20
|
314
|
334
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
12,609
|
1,736
|
14,345
|
|||||||||
Home equity loans
|
153
|
42
|
195
|
|||||||||
Home equity lines of credit
|
2,187
|
117
|
2,304
|
|||||||||
Installment
|
23
|
83
|
106
|
|||||||||
Total non-accrual loans
|
15,191
|
2,292
|
17,483
|
|||||||||
Restructured real estate mortgages - 1 to 4 family
|
10
|
-
|
10
|
|||||||||
Total nonperforming loans
|
$
|
15,201
|
$ |
2,292
|
$ |
17,493
|
|
December 31, 2021
|
|||||||||||
(dollars in thousands)
|
New York and
other states*
|
Florida
|
Total
|
|||||||||
Loans in non-accrual status:
|
||||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
67
|
-
|
67
|
||||||||
Other
|
45
|
-
|
45
|
|||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||
First mortgages
|
13,990
|
1,797
|
15,787
|
|||||||||
Home equity loans
|
247
|
45
|
292
|
|||||||||
Home equity lines of credit
|
2,337
|
174
|
2,511
|
|||||||||
Installment
|
23
|
14
|
37
|
|||||||||
Total non-accrual loans
|
16,709
|
2,030
|
18,739
|
|||||||||
Restructured real estate mortgages - 1 to 4 family
|
17
|
-
|
17
|
|||||||||
Total nonperforming loans
|
$
|
16,726
|
2,030
|
18,756
|
|
December 31, 2022
|
|||||||||||
(dollars in thousands)
|
Non-accrual With
No Allowance for
Credit Loss
|
Non-accrual With
Allowance for
Credit Loss
|
Loans Past Due
Over 89 Days
Still Accruing
|
|||||||||
|
||||||||||||
|
||||||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
160
|
$
|
39
|
-
|
|||||||
Other
|
20
|
314
|
-
|
|||||||||
Real estate mortgage - 1
to 4 family:
|
||||||||||||
First mortgages
|
13,502
|
843
|
-
|
|||||||||
Home equity loans
|
129
|
66
|
-
|
|||||||||
Home equity lines of credit
|
2,257
|
47
|
-
|
|||||||||
Installment
|
82
|
24
|
-
|
|||||||||
Total loans, net
|
$
|
16,150
|
$
|
1,333
|
-
|
|
Type of Collateral
|
|||||||||||
(dollars in thousands)
|
||||||||||||
|
Real Estate
|
Investment
Securities/Cash
|
Other
|
|||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
$
|
312
|
-
|
-
|
||||||||
Other
|
334
|
-
|
-
|
|||||||||
Real estate mortgage - 1
to 4 family:
|
|
|
|
|||||||||
First mortgages
|
21,467
|
-
|
-
|
|||||||||
Home equity loans
|
236
|
-
|
-
|
|||||||||
Home equity lines of credit
|
3,264
|
-
|
-
|
|||||||||
Installment
|
82
|
-
|
-
|
|||||||||
Total
|
$
|
25,695
|
-
|
-
|
|
Twelve months ended December 31, 2022
|
Twelve months ended December 31, 2021
|
Year ended 12/31/20
|
|||||||||||||||||||||||||||||||||
New York and
other states*:
(dollars in thousands)
|
Number
of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number
of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number
of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||||||||||
Commercial real estate
|
-
|
$
|
-
|
-
|
-
|
$
|
-
|
-
|
1
|
$
|
125
|
125
|
||||||||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||||||||||||||
First mortgages
|
11
|
1,587
|
1,587
|
6
|
1,114
|
1,114
|
12
|
2,303
|
2,303
|
|||||||||||||||||||||||||||
Home equity loans
|
-
|
-
|
-
|
1
|
2
|
2
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Home equity lines of credit
|
-
|
-
|
-
|
2
|
40
|
40
|
3
|
169
|
169
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
11
|
$
|
1,587
|
1,587
|
9
|
$
|
1,156
|
1,156
|
16
|
$
|
2,597
|
2,597
|
Florida:
(dollars in thousands)
|
Number
of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number
of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number
of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial: |
||||||||||||||||||||||||||||||||||||
Commercial real estate
|
- | $ |
- | - | - | $ |
- | - | - | $ |
- | - | ||||||||||||||||||||||||
Real estate mortgage - 1 to 4 family:
|
||||||||||||||||||||||||||||||||||||
First mortgages
|
1
|
|
119
|
119
|
1
|
|
77
|
77
|
4
|
|
586
|
586
|
||||||||||||||||||||||||
Home equity loans
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Home equity lines of credit
|
-
|
-
|
-
|
1
|
50
|
50
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
1
|
$
|
119
|
119
|
2
|
$
|
127
|
127
|
4
|
$
|
586
|
586
|
(5) |
Bank Premises and Equipment
|
(dollars in thousands) | ||||||||
|
2022
|
2021
|
||||||
Land
|
$
|
2,426
|
$ |
2,443
|
||||
Buildings
|
36,260
|
36,327
|
||||||
Furniture, fixtures and equipment
|
60,320
|
58,163
|
||||||
Leasehold improvements
|
34,860
|
33,918
|
||||||
Total bank premises and equipment
|
133,866
|
130,851
|
||||||
Accumulated depreciation and amortization
|
(101,310
|
)
|
(97,824
|
)
|
||||
Total
|
$
|
32,556
|
$ |
33,027
|
(6) |
Deposits
|
(dollars in thousands)
|
For the year ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
|
||||||||||||
Interest bearing checking accounts
|
$
|
190
|
$ |
178
|
$ |
148
|
||||||
Savings accounts
|
920
|
624
|
716
|
|||||||||
Time deposits and money market accounts
|
4,617
|
5,863
|
22,834
|
|||||||||
Total
|
$
|
5,727
|
$ |
6,665
|
$ |
23,698
|
(dollars in thousands)
|
||||
|
||||
Under 1 year
|
$
|
883,218
|
||
1 to 2 years
|
50,972
|
|||
2 to 3 years
|
3,378
|
|||
3 to 4 years
|
660
|
|||
4 to 5 years
|
90,431
|
|||
Over 5 years
|
104
|
|||
|
$
|
1,028,763
|
(7) |
Short-Term Borrowings
|
(dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||
|
||||||||||||
Amount outstanding at December 31,
|
$
|
122,700
|
$ |
244,686
|
$ |
214,755
|
||||||
Maximum amount outstanding at any month end
|
253,219
|
244,686
|
213,043
|
|||||||||
Average amount outstanding
|
177,599
|
232,815
|
180,065
|
|||||||||
Weighted average interest rate:
|
||||||||||||
For the year
|
0.42
|
%
|
0.39
|
%
|
0.56
|
%
|
||||||
As of year end
|
0.86
|
0.37
|
0.47
|
(8) |
Income Taxes
|
(dollars in thousands)
|
For the year ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Current tax expense:
|
||||||||||||
Federal
|
$
|
17,136
|
$
|
17,657
|
$
|
15,662
|
||||||
State
|
2,933
|
3,195
|
2,399
|
|||||||||
Total current tax expense
|
20,069
|
20,852
|
18,061
|
|||||||||
Deferred tax (benefit) expense
|
4,114
|
(238
|
)
|
(1,067
|
)
|
|||||||
Total income tax expense
|
$
|
24,183
|
$
|
20,614
|
$
|
16,994
|
|
As of December 31,
|
|||||||
(dollars in thousands)
|
2022
|
2021
|
||||||
|
Deductible
temporary
differences
|
Deductible
temporary
differences
|
||||||
|
||||||||
Benefits and deferred remuneration
|
$
|
(8,478
|
)
|
$ |
(7,335
|
)
|
||
Difference in reporting the allowance for loan losses, net
|
12,424
|
12,369
|
||||||
Other income or expense not yet reported for tax purposes
|
420
|
1,907
|
||||||
Depreciable assets
|
(2,389
|
)
|
(2,068
|
)
|
||||
Net deferred tax asset at end of year
|
1,977
|
4,873
|
||||||
Impact of ASU 2016-13, Current Expected Credit Loss (CECL)
|
1,218 | - | ||||||
Net deferred tax asset at beginning of year
|
4,873
|
4,635
|
||||||
Deferred tax expense (benefit)
|
$
|
4,114
|
$ |
(238
|
)
|
|
For the year ended
December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Statutory federal income tax rate
|
21.0
|
%
|
21.0
|
%
|
21.0
|
%
|
||||||
Increase/(decrease) in taxes resulting from:
|
||||||||||||
State income tax, net of federal tax benefit
|
3.0
|
3.2
|
2.4
|
|||||||||
Other items
|
0.3
|
0.9
|
1.1
|
|||||||||
Effective income tax rate
|
24.3
|
%
|
25.1
|
%
|
24.5
|
%
|
(9) |
Benefit Plans
|
(a) |
Retirement Plan
|
|
December 31,
|
|||||||
(dollars in thousands)
|
2022
|
2021
|
||||||
|
||||||||
Projected benefit obligation at beginning of year
|
$
|
30,905
|
$
|
33,504
|
||||
Interest cost
|
888
|
856
|
||||||
Benefit payments and expected expenses
|
(1,823
|
)
|
(2,142
|
)
|
||||
Net actuarial (gain) loss
|
(6,928
|
)
|
(1,313
|
)
|
||||
Projected benefit obligation at end of year
|
$
|
23,042
|
$
|
30,905
|
|
December 31,
|
|||||||
(dollars in thousands)
|
2022
|
2021
|
||||||
|
||||||||
Fair Value of plan assets at beginning of year
|
$
|
63,066
|
$
|
56,237
|
||||
Actual (loss) gain on plan assets
|
(8,532)
|
|
8,952
|
|||||
Benefit payments and actual expenses
|
(1,861
|
)
|
(2,123
|
)
|
||||
Fair value of plan assets at end of year
|
52,673
|
63,066
|
||||||
|
||||||||
Funded status at end of year
|
$
|
29,631
|
$
|
32,161
|
|
December 31,
|
|||||||
|
2022
|
2021
|
||||||
Net actuarial loss (gain)
|
$
|
1,170
|
$
|
(6,038
|
)
|
|
For the years ended
December 31,
|
|||||||||||
(dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||
|
||||||||||||
Service cost
|
$
|
-
|
$
|
-
|
$
|
37
|
||||||
Interest cost
|
888
|
856
|
1,076
|
|||||||||
Expected return on plan assets
|
(3,227
|
)
|
(2,846
|
)
|
(3,020
|
)
|
||||||
Net periodic pension credit
|
(2,339
|
)
|
(1,990
|
)
|
(1,907
|
)
|
||||||
|
||||||||||||
Net actuarial loss (gain) included in other comprehensive income (loss)
|
4,869
|
(7,439
|
)
|
(386
|
)
|
|||||||
Total recognized in other comprehensive income (loss)
|
4,869
|
(7,439
|
)
|
(386
|
)
|
|||||||
|
||||||||||||
Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss)
|
$
|
2,530
|
$
|
(9,429
|
)
|
$
|
(2,293
|
)
|
(dollars in thousands)
|
||||
Year
|
Pension Benefits
|
|||
2023
|
$
|
1,686
|
||
2024
|
1,705
|
|||
2025
|
1,721
|
|||
2026
|
1,741
|
|||
2027
|
1,738
|
|||
2028 - 2032
|
8,824
|
|
2022
|
2021
|
2020
|
|||||||||
Discount rate
|
5.44
|
%
|
2.96
|
%
|
2.65
|
%
|
|
2022
|
2021
|
2020
|
|||||||||
Discount rate
|
2.96
|
%
|
2.65
|
%
|
3.56
|
%
|
||||||
Expected long-term rate of return on assets
|
5.25
|
5.25
|
6.00
|
(b) |
Supplemental Retirement Plan
|
(c) |
Postretirement Benefits
|
(dollars in thousands)
|
December 31,
|
|||||||
|
2022
|
2021
|
||||||
Accumulated benefit obligation at beginning of year
|
$
|
7,016
|
$
|
6,609
|
||||
Service cost
|
18
|
75
|
||||||
Interest cost
|
207
|
190
|
||||||
Prior Service cost | - | 611 | ||||||
Benefits paid
|
(72
|
)
|
(80
|
)
|
||||
Net actuarial gain
|
(2,276
|
)
|
(389
|
)
|
||||
Accumulated benefit obligation at end of year
|
$
|
4,893
|
$
|
7,016
|
(dollars in thousands)
|
December 31,
|
|||||||
|
2022
|
2021
|
||||||
Fair value of plan assets at beginning of year
|
$
|
33,344
|
$ |
29,126
|
||||
Actual (loss) gain on plan assets
|
(4,341
|
)
|
4,243
|
|||||
Company contributions
|
57
|
55
|
||||||
Benefits paid and actual expenses
|
(72
|
)
|
(80
|
)
|
||||
Fair value of plan assets at end of year
|
28,988
|
33,344
|
||||||
|
||||||||
Funded status at end of year
|
$
|
24,095
|
$ |
26,328
|
(dollars in thousands)
|
December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Service cost
|
$
|
18
|
$
|
75
|
$
|
73
|
||||||
Interest cost
|
207
|
190
|
203
|
|||||||||
Expected return on plan assets
|
(1,332
|
)
|
(1,163
|
)
|
(1,183
|
)
|
||||||
Amortization of net actuarial gain
|
(1,008
|
)
|
(674
|
)
|
(708
|
)
|
||||||
Amortization of prior service (credit) cost
|
(313
|
)
|
405
|
(196
|
)
|
|||||||
Net periodic benefit credit
|
(2,428
|
)
|
(1,167
|
)
|
(1,811
|
)
|
||||||
|
||||||||||||
Net loss (gain)
|
3,397
|
(3,469
|
)
|
(1,295
|
)
|
|||||||
Amortization of prior service credit (cost)
|
313
|
(405
|
)
|
196
|
||||||||
Prior service cost
|
-
|
611
|
-
|
|||||||||
Amortization of net gain
|
1,008
|
674
|
708
|
|||||||||
Total amount recognized in other comprehensive loss
|
4,718
|
(2,589
|
)
|
(391
|
)
|
|||||||
Total amount recognized in net periodic benefit cost and other comprehensive loss
|
$
|
2,290
|
$
|
(3,756
|
)
|
$
|
(2,202
|
)
|
(dollars in thousands)
|
||||
Year
|
Postretirement Benefits
|
|||
|
||||
2023
|
$
|
112
|
||
2024
|
128
|
|||
2025
|
151
|
|||
2026
|
176
|
|||
2027
|
191
|
|||
2028 - 2032
|
1,454
|
|
2022
|
2021
|
2020
|
|||||||||
Discount rate
|
5.44
|
%
|
2.96
|
%
|
2.65
|
%
|
|
2022
|
2021
|
2020
|
|||||||||
Discount rate
|
2.96
|
%
|
2.65
|
%
|
3.56
|
%
|
||||||
Expected long-term rate of return on assets, net of tax
|
4.00
|
4.00
|
4.50
|
(d)
|
Components of Accumulated Other Comprehensive Income (Loss) Related to Retirement and Postretirement Benefit Plans
|
(dollars in thousands)
|
December 31, 2022
|
|||||||||||
|
Retirement
Plan
|
Post-
Retirement
Benefit Plan
|
Total
|
|||||||||
Change in overfunded position of pension and postretirement benefits
|
$
|
4,869
|
$ |
3,397
|
$ |
8,266
|
||||||
Amortization of net actuarial gain
|
-
|
1,008
|
1,008
|
|||||||||
Amortization of prior service credit
|
-
|
313
|
313
|
|||||||||
Total
|
$
|
4,869
|
$ |
4,718
|
$ |
9,587
|
|
December 31, 2021
|
|||||||||||
|
Retirement
Plan
|
Post-
Retirement
Benefit Plan
|
Total
|
|||||||||
Change in overfunded position of pension and postretirement benefits
|
$
|
(7,439
|
)
|
$ |
(3,469
|
)
|
$ |
(10,908
|
)
|
|||
Prior service cost |
- | 611 | 611 | |||||||||
Amortization of net actuarial gain
|
-
|
674
|
674
|
|||||||||
Amortization of prior service cost
|
-
|
(405
|
)
|
(405
|
)
|
|||||||
Total
|
$ |
(7,439
|
)
|
$ |
(2,589
|
)
|
$ |
(10,028
|
)
|
(e) |
Major Categories of Pension and Postretirement Benefit Plan Assets:
|
|
Pension Benefit
Plan Assets
|
Postretirement Benefit
Plan Assets
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Debt Securities
|
30
|
%
|
33
|
%
|
29
|
%
|
32
|
%
|
||||||||
Equity Securities
|
59
|
62
|
57
|
63
|
||||||||||||
Other
|
11
|
5
|
14
|
5
|
||||||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
|
Fair Value Measurements at
December 31, 2022 Using: |
|||||||||||||||
Retirement Plan
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Plan Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
5,734
|
$ |
5,734
|
$ |
-
|
$ |
-
|
||||||||
Equity mutual funds
|
30,972
|
30,972
|
-
|
-
|
||||||||||||
U.S. government sponsored enterprises
|
15,423
|
-
|
15,423
|
-
|
||||||||||||
Fixed income mutual funds
|
544
|
544
|
-
|
-
|
||||||||||||
|
||||||||||||||||
Total Plan Assets
|
$
|
52,673
|
$ |
37,250
|
$ |
15,423
|
$ |
-
|
|
Fair Value Measurements at
December 31, 2022 Using:
|
|||||||||||||||
Postretirement Benefits
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Plan Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
3,945
|
$ |
3,945
|
$ |
-
|
$ |
-
|
||||||||
Equity mutual funds
|
16,646
|
16,646
|
-
|
-
|
||||||||||||
U.S. government sponsored enterprises
|
8,397
|
-
|
8,397
|
-
|
||||||||||||
|
||||||||||||||||
Total Plan Assets
|
$
|
28,988
|
$ |
20,591
|
$ |
8,397
|
$ |
-
|
|
Fair Value Measurements at
December 31, 2021 Using:
|
|||||||||||||||
Retirement Plan
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Plan Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
3,075
|
$ |
3,075
|
$ |
-
|
$ |
-
|
||||||||
Equity mutual funds
|
39,249
|
39,249
|
-
|
-
|
||||||||||||
U.S. government sponsored enterprises
|
17,032
|
-
|
17,032
|
-
|
||||||||||||
Corporate bonds
|
3,041
|
-
|
3,041
|
-
|
||||||||||||
Fixed income mutual funds
|
669 | 669 | - | - | ||||||||||||
|
||||||||||||||||
Total Plan Assets
|
$
|
63,066
|
$ |
42,993
|
$ |
20,073
|
$ |
-
|
|
|
Fair Value Measurements at
December 31, 2021 Using:
|
|||||||||||||||
Postretirement Benefits
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Plan Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
1,600
|
$ |
1,600
|
$ |
-
|
$ |
-
|
||||||||
Equity mutual funds
|
21,005
|
21,005
|
-
|
-
|
||||||||||||
U.S. government sponsored enterprises
|
8,712
|
-
|
8,712
|
-
|
||||||||||||
Corporate bonds
|
2,027
|
-
|
2,027
|
-
|
||||||||||||
|
||||||||||||||||
Total Plan Assets
|
$
|
33,344
|
$ |
22,605
|
$ |
10,739
|
$ |
-
|
(f) |
Incentive and Bonus Plans
|
(g)
|
Stock-Based Compensation Plans-Equity Awards
|
|
Outstanding Options
|
|||||||||
|
Number of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
|
|||||||
Balance, January 1, 2022
|
90,311
|
$
|
34.38
|
|
||||||
New options awarded - 2022
|
-
|
-
|
|
|||||||
Expired options - 2022
|
(1,000
|
)
|
25.85
|
|
||||||
Options forfeited - 2022
|
-
|
-
|
|
|||||||
Exercised options - 2022
|
(12,458
|
)
|
34.47
|
|
||||||
Balance, December 31, 2022
|
76,853
|
$
|
34.48
|
1.83 years
|
Exercisable Options
|
||||||||||
Balance, December 31, 2022
|
76,853
|
$
|
34.48
|
1.83 years
|
(h)
|
Stock-Based Compensation Plans-Liability Awards
|
|
Outstanding
Units
|
|||
Balance, December 31, 2021
|
82,632
|
|||
New awards granted
|
43,072
|
|||
Forfeited awards
|
(1,865
|
)
|
||
Awards settled
|
(40,611
|
)
|
||
Balance, December 31, 2022
|
83,228
|
Performance share units
|
||||
|
Outstanding
Units
|
|||
Balance, December 31, 2021
|
145,115
|
|||
New awards granted
|
38,255
|
|||
Forfeited awards
|
(9,365
|
)
|
||
Awards settled
|
(18,372
|
)
|
||
Balance, December 31, 2022
|
155,633
|
(10) |
Commitments and Contingent Liabilities
|
(a) |
Litigation
|
(b) |
Outsourced Services
|
(11) |
Earnings Per Share
|
(dollars in thousands,
except per share data)
|
For the years ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Net income
|
$
|
75,234
|
$ |
61,519
|
$ |
52,452
|
||||||
Weighted average common shares (1)
|
19,131
|
19,259
|
19,301
|
|||||||||
Effect of dilutive common stock options (1)
|
2
|
4
|
2
|
|||||||||
|
||||||||||||
Weighted average common shares including potential dilutive shares (1)
|
19,133
|
19,263
|
19,303
|
|||||||||
Basic EPS (1)
|
$
|
3.93
|
$ |
3.19
|
$ |
2.72
|
||||||
Diluted EPS (1)
|
$
|
3.93
|
$ |
3.19
|
$ |
2.72
|
(1)
|
Share and per share amounts have been adjusted for all periods presented for the
reverse stock split which occurred on May 28, 2021. |
(12)
|
Off-Balance Sheet Financial Instruments
|
(13) |
Fair Value
|
|
Fair Value Measurements at
December 31, 2022 Using:
|
|||||||||||||||
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
118,187
|
$
|
-
|
$
|
118,187
|
$
|
-
|
||||||||
State and political subdivisions
|
34
|
-
|
34
|
-
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
260,316
|
-
|
260,316
|
-
|
||||||||||||
Corporate bonds
|
81,346
|
-
|
81,346
|
-
|
||||||||||||
Small Business Administration - guaranteed participation securities
|
20,977
|
-
|
20,977
|
-
|
||||||||||||
Other
|
653
|
-
|
653
|
-
|
||||||||||||
|
||||||||||||||||
Total securities available for sale
|
$
|
481,513
|
$
|
-
|
$
|
481,513
|
$
|
-
|
|
Fair Value Measurements at
December 31, 2021 Using:
|
|||||||||||||||
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. government sponsored enterprises
|
$
|
59,179
|
$
|
-
|
$
|
59,179
|
$
|
-
|
||||||||
State and political subdivisions
|
41
|
-
|
41
|
-
|
||||||||||||
Mortgage backed securities and collateralized mortgage obligations - residential
|
270,798
|
-
|
270,798
|
-
|
||||||||||||
Corporate bonds
|
45,337
|
-
|
45,337
|
-
|
||||||||||||
Small Business Administration - guaranteed participation securities
|
31,674
|
-
|
31,674
|
-
|
||||||||||||
Other
|
684
|
-
|
684
|
-
|
||||||||||||
|
||||||||||||||||
Total securities available for sale
|
$
|
407,713
|
$
|
-
|
$
|
407,713
|
$
|
-
|
|
Fair Value Measurements at
December 31, 2022 Using:
|
|
|
||||||||||||||||||||
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Valuation technique
|
Unobservable inputs
|
Range (Weighted Average)
|
||||||||||||||||
|
|
|
|||||||||||||||||||||
Other real estate owned
|
$ |
2,061
|
$ |
-
|
$ |
-
|
$ |
2,061
|
|
|
2% - 47% (18
|
%)
|
|||||||||||
|
|
||||||||||||||||||||||
Individually evaluated loans:
|
|
|
|||||||||||||||||||||
Real estate mortgage - 1 to 4 family
|
-
|
-
|
-
|
-
|
|
|
N/A
|
|
Fair Value Measurements at
December 31, 2021 Using:
|
|
|
||||||||||||||||||||
(dollars in thousands)
|
Carrying
Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Valuation technique
|
Unobservable inputs
|
Range (Weighted Average)
|
||||||||||||||||
|
|
|
|||||||||||||||||||||
Other real estate owned
|
$ |
362
|
$ |
-
|
$ |
-
|
$ |
362
|
|
|
1% - 14% (6
|
%)
|
|||||||||||
|
|||||||||||||||||||||||
Impaired loans:
|
|
|
|||||||||||||||||||||
Real estate mortgage - 1 to 4 family
|
-
|
-
|
-
|
-
|
|
|
N/A
|
|
(dollars in thousands)
|
Carrying
|
Fair Value Measurements at
December 31, 2022 Using:
|
||||||||||||||||||
|
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
650,599
|
650,599
|
-
|
-
|
650,599
|
||||||||||||||
Securities available for sale
|
481,513
|
-
|
481,513
|
-
|
481,513
|
|||||||||||||||
Held to maturity securities
|
7,707
|
-
|
7,580
|
-
|
7,580
|
|||||||||||||||
Federal Reserve Bank and
|
||||||||||||||||||||
Federal Home Loan Bank stock
|
5,797
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Net loans
|
4,687,169
|
-
|
-
|
4,328,508
|
4,328,508
|
|||||||||||||||
Accrued interest receivable
|
11,492
|
189
|
1,866
|
9,437
|
11,492
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Demand deposits
|
838,147
|
838,147
|
-
|
-
|
838,147
|
|||||||||||||||
Interest bearing deposits
|
4,354,663
|
3,325,900
|
1,012,528
|
-
|
4,338,428
|
|||||||||||||||
Short-term borrowings
|
122,700
|
-
|
122,700
|
-
|
122,700
|
|||||||||||||||
Accrued interest payable
|
602
|
60
|
542
|
-
|
602
|
|||||||||||||||
|
(dollars in thousands)
|
Carrying
|
Fair Value Measurements at
December 31, 2021 Using:
|
||||||||||||||||||
|
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
1,219,470
|
1,219,470
|
-
|
-
|
1,219,470
|
||||||||||||||
Securities available for sale
|
407,713
|
-
|
407,713
|
-
|
407,713
|
|||||||||||||||
Held to maturity securities
|
9,923
|
-
|
10,695
|
-
|
10,695
|
|||||||||||||||
Federal Reserve Bank and
|
||||||||||||||||||||
Federal Home Loan Bank stock
|
5,604
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Net loans
|
4,394,512
|
-
|
-
|
4,451,031
|
4,451,031
|
|||||||||||||||
Accrued interest receivable
|
9,099
|
10
|
1,235
|
7,854
|
9,099
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Demand deposits
|
794,878
|
794,878
|
-
|
-
|
794,878
|
|||||||||||||||
Interest bearing deposits
|
4,473,251
|
3,477,937
|
993,676
|
-
|
4,471,613
|
|||||||||||||||
Short-term borrowings
|
244,686
|
-
|
244,686
|
-
|
244,686
|
|||||||||||||||
Accrued interest payable
|
163
|
34
|
129
|
-
|
163
|
(14) |
Regulatory Capital Requirements
|
|
As of December 31, 2022
|
Well
|
Minimum for
Capital Adequacy plus
Capital Conservation
|
|||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Capitalized(1)
|
Buffer(1)(2)
|
||||||||||||
|
||||||||||||||||
Tier 1 leverage ratio
|
$
|
609,998
|
10.116
|
%
|
5.000
|
%
|
4.000
|
%
|
||||||||
Common equity Tier 1 capital
|
609,998
|
18.431
|
6.500
|
7.000
|
||||||||||||
Tier 1 risk-based capital
|
609,998
|
18.431
|
8.000
|
8.500
|
||||||||||||
Total risk-based capital
|
651,462
|
19.684
|
10.000
|
10.500
|
|
As of December 31, 2021
|
Well
|
Minimum for
Capital Adequacy plus
Capital Conservation
|
|||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Capitalized(1)
|
Buffer(1)(2)
|
||||||||||||
|
||||||||||||||||
Tier 1 leverage ratio
|
$
|
570,594
|
9.324
|
%
|
5.000
|
%
|
4.000
|
%
|
||||||||
Common equity Tier 1 capital
|
570,594
|
18.954
|
6.500
|
7.000
|
||||||||||||
Tier 1 risk-based capital
|
570,594
|
18.954
|
8.000
|
8.500
|
||||||||||||
Total risk-based capital
|
608,308
|
20.206
|
10.000
|
10.500
|
|
As of December 31, 2022
|
Minimum for
Capital Adequacy plus
Capital Conservation
|
||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Buffer(1)(2)
|
|||||||||
|
||||||||||||
Tier 1 leverage ratio
|
$
|
626,628
|
10.390
|
%
|
4.000
|
%
|
||||||
Common equity Tier 1 capital
|
626,628
|
18.929
|
7.000
|
|||||||||
Tier 1 risk-based capital
|
626,628
|
18.929
|
8.500
|
|||||||||
Total risk-based capital
|
668,102
|
20.182
|
10.500
|
|
As of December 31, 2021
|
Minimum for
Capital Adequacy plus
Capital Conservation
|
||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Buffer(1)(2)
|
|||||||||
|
||||||||||||
Tier 1 leverage ratio
|
$
|
588,427
|
9.614
|
%
|
4.000
|
%
|
||||||
Common equity Tier 1 capital
|
588,427
|
19.541
|
7.000
|
|||||||||
Tier 1 risk-based capital
|
588,427
|
19.541
|
8.500
|
|||||||||
Total risk-based capital
|
626,150
|
20.794
|
10.500
|
(1) |
Federal regulatory minimum requirements to be considered to be Well
Capitalized and Adequately Capitalized.
|
(2) |
The December 31, 2022 and 2021 common equity tier 1, tier 1
risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent.
|
(15) |
Accumulated Other Comprehensive Income
|
|
December 31, 2022
|
|||||||||||||||||||
(dollars in thousands)
|
Balance at
12/31/2021
|
Other
Comprehensive
Income (loss)-
Before
Reclassifications
|
Amount
reclassified
from Accumulated
Other Comprehensive
Income
|
Other
Comprehensive
Income (loss)-
year ended
12/31/2022
|
Balance at
12/31/2022
|
|||||||||||||||
|
||||||||||||||||||||
Net unrealized holding gain (loss) on securities available for sale, net of tax
|
$
|
(26
|
)
|
$
|
(32,245
|
)
|
$
|
-
|
$
|
(32,245
|
)
|
$
|
(32,271
|
)
|
||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
13,706
|
(6,118
|
)
|
-
|
(6,118
|
)
|
7,588
|
|||||||||||||
Net change in net actuarial gain and prior service credit on pension and pension and postretirement benefit plans, net of
tax
|
(1,533
|
)
|
(978
|
)
|
(978
|
)
|
(2,511
|
)
|
||||||||||||
|
||||||||||||||||||||
Accumulated other comprehensive income (loss), net of tax
|
$
|
12,147
|
$
|
(38,363
|
)
|
$
|
(978
|
)
|
$
|
(39,341
|
)
|
$
|
(27,194
|
)
|
|
December 31, 2021
|
|||||||||||||||||||
(dollars in thousands)
|
Balance at
12/31/2020
|
Other
Comprehensive
Income (loss)-
Before
Reclassifications
|
Amount
reclassified
from Accumulated
Other Comprehensive
Income
|
Other
Comprehensive
Income (loss)-
year ended
12/31/2021
|
Balance at
12/31/2021
|
|||||||||||||||
|
||||||||||||||||||||
Net unrealized holding gain on securities available for sale, net of tax
|
$
|
7,186
|
$
|
(7,212
|
)
|
$
|
-
|
$
|
(7,212
|
)
|
$
|
(26
|
)
|
|||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
6,084
|
7,622
|
-
|
7,622
|
13,706
|
|||||||||||||||
Net change in net actuarial gain and prior service cost on pension and pension and postretirement benefit plans, net of tax
|
(1,334
|
)
|
(199
|
)
|
(199
|
)
|
(1,533
|
)
|
||||||||||||
|
||||||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax
|
$
|
11,936
|
$
|
410
|
$
|
(199
|
)
|
$
|
211
|
$
|
12,147
|
|
December 31, 2020
|
|||||||||||||||||||
(dollars in thousands)
|
Balance at
12/31/2019
|
Other
Comprehensive
Income (loss)-
Before
Reclassifications
|
Amount
reclassified
from Accumulated
Other Comprehensive
Income
|
Other
Comprehensive
Income (loss)-
year ended
12/31/2020
|
Balance at
12/31/2020
|
|||||||||||||||
|
||||||||||||||||||||
Net unrealized holding (loss) gain on securities available for sale, net of tax
|
$
|
286
|
$
|
7,755
|
$
|
(855
|
)
|
$
|
6,900
|
$
|
7,186
|
|||||||||
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax
|
4,840
|
1,244
|
-
|
1,244
|
6,084
|
|||||||||||||||
Net change in net actuarial gain and prior service credit on pension and pension and postretirement benefit plans, net of
tax
|
(665
|
)
|
-
|
(669
|
)
|
(669
|
)
|
(1,334
|
)
|
|||||||||||
|
||||||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax
|
$
|
4,461
|
$
|
8,999
|
$
|
(1,524
|
)
|
$
|
7,475
|
$
|
11,936
|
(dollars in thousands)
|
Years ended
December 31,
|
|
|||||||||||
|
2022
|
2021
|
2020
|
Affected Line Item in Financial Statements
|
|||||||||
Unrealized gains on securities available for sale:
|
|||||||||||||
Realized gain on securities transactions
|
$
|
-
|
$
|
-
|
$
|
1,155
|
Net gain on securities transactions
|
||||||
Income tax expense
|
-
|
-
|
(300
|
)
|
Income taxes
|
||||||||
Net of tax
|
-
|
-
|
855
|
||||||||||
Amortization of pension and postretirement benefit items:
|
|
||||||||||||
Prior Service Cost
|
|||||||||||||
Amortization of net actuarial gain
|
1,008
|
674
|
708
|
Salaries and employee benefits
|
|||||||||
Amortization of prior service credit (cost)
|
313
|
(405
|
)
|
196
|
Salaries and employee benefits
|
||||||||
Income tax benefit
|
(343
|
)
|
(70
|
)
|
(235
|
)
|
Income taxes
|
||||||
Net of tax
|
978
|
199
|
669
|
|
|||||||||
|
|
||||||||||||
Total reclassifications, net of tax
|
$
|
978
|
$
|
199
|
$
|
1,524
|
|
(16)
|
Revenue from Contracts with Customers
|
(dollars in thousands)
|
December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Non-interest income
|
||||||||||||
Service Charges on Deposits
|
||||||||||||
Overdraft fees
|
$
|
2,708
|
$ |
2,660
|
$ |
2,665
|
||||||
Other
|
2,044
|
1,940
|
1,629
|
|||||||||
Interchange Income
|
6,348
|
5,281
|
4,199
|
|||||||||
Net gain on securities transactions (a)
|
-
|
-
|
1,155
|
|||||||||
Wealth management fees
|
7,037
|
7,358
|
6,279
|
|||||||||
Other (a)
|
1,123
|
698
|
1,243
|
|||||||||
|
||||||||||||
Total non-interest income
|
$
|
19,260
|
$ |
17,937
|
$ |
17,170
|
(a) |
Not within the scope of ASC 606.
|
(17)
|
Operating Leases
|
(dollars in
thousands)
|
2022
|
2021
|
2020
|
|||||||||
Operating
lease cost
|
$
|
8,213
|
$ |
8,128
|
$ |
8,044
|
||||||
Variable
lease cost
|
2,183
|
2,015
|
2,029
|
|||||||||
Total Lease
costs
|
$
|
10,396
|
$ |
10,143
|
$ |
10,073
|
(dollars in thousands)
|
||||
Year ending
December 31,
|
||||
2023
|
$
|
8,310
|
||
2024
|
8,202
|
|||
2025
|
7,795
|
|||
2026
|
6,820
|
|||
2027
|
5,541
|
|||
Thereafter
|
19,260
|
|||
Total lease
payments
|
$
|
55,928
|
||
Less:
Interest
|
6,948
|
|||
Present value
of lease liabilities
|
$
|
48,980
|
(18) |
Recent Accounting Pronouncements
|
(19)
|
Parent Company Only
|
(dollars in thousands)
|
Years ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Income:
|
||||||||||||
Dividends and interest from subsidiaries
|
|
$
|
34,125
|
34,096
|
31,100
|
|||||||
Net gain on securities transactions
|
-
|
-
|
-
|
|||||||||
Miscellaneous income
|
-
|
-
|
-
|
|||||||||
Total income
|
34,125
|
34,096
|
31,100
|
|||||||||
|
||||||||||||
Expense:
|
||||||||||||
Operating supplies
|
-
|
21
|
20
|
|||||||||
Professional services
|
585
|
819
|
655
|
|||||||||
Miscellaneous expense
|
1,752
|
3,419
|
1,666
|
|||||||||
Total expense
|
2,337
|
4,259
|
2,341
|
|||||||||
Income before income taxes and subsidiaries’ undistributed earnings
|
31,788
|
29,837
|
28,759
|
|||||||||
Income tax benefit
|
(559
|
)
|
(972
|
)
|
(558
|
)
|
||||||
Income before subsidiaries’ undistributed earnings
|
32,347
|
30,809
|
29,317
|
|||||||||
Equity in undistributed earnings of subsidiaries
|
42,887
|
30,710
|
23,135
|
|||||||||
Net income
|
$
|
75,234
|
61,519
|
52,452
|
||||||||
Change in other comprehensive (loss) income
|
(39,341
|
)
|
211
|
7,475
|
||||||||
Comprehensive income
|
$
|
35,893
|
61,730
|
59,927
|
(dollars in thousands)
|
December 31,
|
|||||||
|
2022
|
2021
|
||||||
Assets:
|
||||||||
Cash in subsidiary bank
|
$
|
25,079
|
26,725
|
|||||
Investments in subsidiaries
|
583,370
|
583,307
|
||||||
Securities available for sale
|
36
|
36
|
||||||
Other assets
|
809
|
681
|
||||||
|
||||||||
Total assets
|
609,294
|
610,749
|
||||||
Liabilities and shareholders’ equity:
|
||||||||
Accrued expenses and other liabilities
|
9,307
|
9,621
|
||||||
Total liabilities
|
9,307
|
9,621
|
||||||
Shareholders’ equity
|
599,987
|
601,128
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
609,294
|
610,749
|
(dollars in thousands)
|
Years ended December 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Increase/(decrease) in cash and cash equivalents:
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
75,234
|
61,519
|
52,452
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Equity in undistributed earnings of subsidiaries
|
(42,887
|
)
|
(30,710
|
)
|
(23,135
|
)
|
||||||
Stock based compensation expense
|
-
|
-
|
15
|
|||||||||
Net change in other assets and accrued expenses
|
(440
|
)
|
354
|
515
|
||||||||
Total adjustments
|
(43,327
|
)
|
(30,356
|
)
|
(22,605
|
)
|
||||||
|
||||||||||||
Net cash provided by operating activities
|
31,907
|
31,163
|
29,847
|
|||||||||
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||
Purchases of securities available for sale
|
-
|
-
|
(1
|
)
|
||||||||
|
||||||||||||
Net cash used in investing activities
|
-
|
-
|
(1
|
)
|
||||||||
|
||||||||||||
Cash flows from financing activities:
|
||||||||||||
Cash used to settle fractional shares in the Reverse Stock Split
|
-
|
(200
|
)
|
-
|
||||||||
Proceeds from exercise of stock options
|
429
|
260
|
-
|
|||||||||
Dividends paid
|
(26,978
|
)
|
(26,266
|
)
|
(26,317
|
)
|
||||||
Payments to acquire treasury stock
|
(7,004
|
)
|
(2,386
|
)
|
(3,493
|
)
|
||||||
Proceeds from sales of treasury stock
|
-
|
-
|
-
|
|||||||||
Net cash used in financing activities
|
(33,553
|
)
|
(28,592
|
)
|
(29,810
|
)
|
||||||
|
||||||||||||
Net increase in cash and cash equivalents
|
(1,646
|
)
|
2,571
|
36
|
||||||||
|
||||||||||||
Cash and cash equivalents at beginning of year
|
26,725
|
24,154
|
24,118
|
|||||||||
|
||||||||||||
Cash and cash equivalents at end of year
|
$
|
25,079
|
26,725
|
24,154
|
Poughkeepsie Office
|
Sheridan Plaza Office
|
Ushers Road Office
|
2656 South Rd.
|
1350 Gerling St.
|
308 Ushers Rd.
|
Poughkeepsie, NY
|
Schenectady, NY
|
Ballston Lake, NY
|
Telephone: (845) 485-7413
|
Telephone: (518) 377-8517
|
Telephone: (518) 877-8069
|
Queensbury Office
|
Slingerlands Office
|
Valatie Office
|
118 Quaker Rd.
|
1569 New Scotland Rd.
|
2929 Route 9
|
Suite 1
|
Slingerlands, NY
|
Valatie, NY
|
Queensbury, NY
|
Telephone: (518) 439-9352
|
Telephone: (518) 758-2265
|
Telephone: (518) 798-7226
|
||
South Glens Falls Office
|
Wappingers Falls Office
|
|
Red Hook Office
|
133 Saratoga Rd.
|
1490 Route 9
|
4 Morgans Way
|
Suite 1
|
Wappingers Falls, NY
|
Red Hook, NY
|
South Glens Falls, NY
|
Telephone: (845) 298-9315
|
Telephone: (845) 752-2224
|
Telephone: (518) 793-7668
|
|
Warrensburg Office
|
||
Rotterdam Office
|
State Farm Road Office
|
9 Lake George Plaza Rd.
|
1416 Curry Rd.
|
2050 Western Ave.
|
Lake George, NY
|
Schenectady, NY
|
Guilderland, NY
|
Telephone: (518) 623-3707
|
Telephone: (518) 355-8330
|
Telephone: (518) 452-6913
|
|
West Sand Lake Office
|
||
Route 2 Office
|
State St. Albany Office
|
3690 NY Route 43
|
201 Troy-Schenectady Rd.
|
112 State St.
|
West Sand Lake, NY
|
Latham, NY
|
Albany, NY
|
Telephone: (518) 674-3327
|
Telephone: (518) 785-7155
|
Telephone: (518) 436-9043
|
|
Wilton Mall Office
|
||
Route 7 Office
|
State St. Schenectady - Main Office
|
3065 NY-50
|
1156 Troy-Schenectady Rd.
|
320 State St.
|
Saratoga Springs, NY
|
Latham, NY
|
Schenectady, NY
|
Telephone: (518) 583-1716
|
Telephone: (518) 785-4744
|
Telephone: (518) 381-3831
|
|
Wolf Road Office
|
||
Saratoga Springs Office
|
Stuyvesant Plaza Office
|
34 Wolf Rd.
|
34 Congress St.
|
1475 Western Ave.
|
Albany, NY
|
Saratoga Springs, NY
|
Albany, NY
|
Telephone: (518) 458-7761
|
Telephone: (518) 587-3520
|
Telephone: (518) 489-2616
|
|
Wynantskill Office
|
||
Schaghticoke Office
|
Troy Office
|
134-136 Main St.
|
2 Main St.
|
1700 5th Ave.
|
Wynantskill, NY
|
Schaghticoke, NY
|
Troy, NY
|
Telephone: (518) 286-2674
|
Telephone: (518) 753-6509
|
Telephone: (518) 274-5420
|
|
Scotia Office
|
Upper Union Street Office
|
|
123 Mohawk Ave.
|
1620 Union St.
|
|
Scotia, NY
|
Schenectady, NY
|
|
Telephone: (518) 372-9416
|
Telephone: (518) 374-4056
|
Florida
|
||
Alafaya Woods Office
|
Curry Ford Road Office
|
Lake Brantley Office
|
1500 Alafaya Trl.
|
3020 Lamberton Blvd., Suite 116
|
909 North SR 434
|
Oviedo, FL
|
Orlando, FL
|
Altamonte Springs, FL
|
Telephone: (407) 359-5991
|
Telephone: (407) 277-9663
|
Telephone: (407) 339-3396
|
Aloma Office
|
Curry Ford West Office
|
Lake Mary Office
|
4070 Aloma Ave.
|
2838 Curry Ford Rd.
|
350 West Lake Mary Blvd.
|
Winter Park, FL
|
Orlando, FL
|
Sanford, FL
|
Telephone: (407) 677-1969
|
Telephone: (407) 893-9878
|
Telephone: (407) 330-7106
|
Apollo Beach Office
|
Davenport Office
|
Lake Nona Office
|
205 Apollo Beach Blvd.
|
2300 Deer Creek Commons Ln.
|
9360 Narcoossee Rd.
|
Apollo Beach, FL
|
Suite 600
|
Orlando, FL
|
Telephone: (813) 649-0460
|
Davenport, FL
|
Telephone: (407) 801-7330
|
Telephone: (863) 424-9493
|
||
Apopka Office
|
Lake Square Office
|
|
1134 North Rock Springs Rd.
|
Dean Road Office
|
10105 Route 441
|
Apopka, FL
|
3920 Dean Rd.
|
Leesburg, FL
|
Telephone: (407) 464-7373
|
Orlando, FL
|
Telephone: (352) 323-8147
|
Telephone: (407) 657-8001
|
||
Avalon Park Office
|
Lee Road Office
|
|
3662 Avalon Park East Blvd.
|
Downtown Orlando Office
|
1084 Lee Rd., Suite 11
|
Orlando, FL
|
415 East Pine St.
|
Orlando, FL
|
Telephone: (407) 380-2264
|
Orlando, FL
|
Telephone: (407) 532-5211
|
Telephone: (407) 422-7129
|
||
Bay Hill Office
|
Lee Vista Office
|
|
6084 Apopka Vineland Rd.
|
East Colonial Office
|
8288 Lee Vista Blvd., Suite E
|
Orlando, FL
|
12901 East Colonial Dr.
|
Orlando, FL
|
Telephone: (321) 251-1859
|
Orlando, FL
|
Telephone: (321) 235-5583
|
Telephone: (407) 275-3075
|
||
BeeLine Center Office
|
Leesburg Office
|
|
10249 South John Young Pkwy.
|
Englewood Office
|
1330 Citizens Blvd., Suite 101
|
Suite 101
|
2930 South McCall Rd.
|
Leesburg, FL
|
Orlando, FL
|
Englewood, FL
|
Telephone: (352) 365-1305
|
Telephone: (407) 240-0945
|
Telephone: (941) 460-0601
|
|
Maitland Office
|
||
Beneva Village Office
|
Gateway Commons Office
|
9400 US Route 17/92, Suite 101
|
5950 South Beneva Rd.
|
1525 East Osceola Pkwy., Suite 120
|
Maitland, FL
|
Sarasota, FL
|
Kissimmee, FL
|
Telephone: (407) 332-6071
|
Telephone: (941) 923-8269
|
Telephone: (407) 932-0398
|
|
Melbourne Office
|
||
Bradenton Office
|
Juno Beach Office
|
2481 Croton Rd.
|
5858 Cortez Rd. West
|
14051 US Highway 1
|
Melbourne, FL
|
Bradenton, FL
|
Juno Beach, FL
|
Telephone: (321) 752 0446
|
Telephone: (941) 792-2604
|
Telephone: (561) 630-4521
|
|
Colonial Drive Office
|
Lady Lake Office
|
Metro West Office
|
4301 East Colonial Dr.
|
873 North US Highway 27/441
|
2619 S. Hiawassee Rd.
|
Orlando, FL
|
Lady Lake, FL
|
Orlando, FL
|
Telephone: (407) 895-6393
|
Telephone: (352) 205-8893
|
Telephone: (407) 293-1580
|
North Clermont Office
|
Rinehart Road Office
|
Vero Beach Office
|
12302 Roper Blvd.
|
1185 Rinehart Rd.
|
4125 20th St.
|
Clermont, FL
|
Sanford, FL
|
Vero Beach, FL
|
Telephone: (352) 243-2563
|
Telephone: (407) 268-3720
|
Telephone: (772) 492-9295
|
Orange City Office
|
Sarasota Office
|
Westwood Plaza Office
|
902 Saxon Blvd., Suite 101
|
2704 Bee Ridge Rd.
|
4942 West State Route 46
|
Orange City, FL
|
Sarasota, FL
|
Suite 1050
|
Telephone: (386) 775-1392
|
Telephone: (941) 929-9451
|
Sanford, FL
|
Telephone: (407) 321-4925
|
||
Ormond Beach Office
|
South Clermont Office
|
|
115 North Nova Rd.
|
16908 High Grove Blvd.
|
Windermere Office
|
Ormond Beach, FL
|
Clermont, FL
|
2899 Maguire Rd.
|
Telephone: (386) 256-3813
|
Telephone: (352) 243-9511
|
Windermere, FL
|
Telephone: (407) 654-0498
|
||
Osprey Office
|
Stuart Office
|
|
1300 South Tamiami Trl.
|
951 SE Federal Highway
|
Winter Garden Office
|
Osprey, FL
|
Stuart, FL
|
16118 Marsh Rd.
|
Telephone: (941) 918-9380
|
Telephone: (772) 286-4757
|
Winter Garden, FL
|
Telephone: (407) 654-4609
|
||
Oviedo Office
|
Sun City Center
|
|
1875 West County Rd. 419
|
4441 Sun City Center Blvd.
|
Winter Haven Office
|
Suite 600
|
Sun City Center, FL
|
7476 Cypress Gardens Blvd. Southeast
|
Oviedo, FL
|
Telephone: (813) 633-1468
|
Winter Haven, FL
|
Telephone: (407) 365-1145
|
Telephone: (863) 326-1918
|
|
Sweetwater Office
|
||
Palm Coast Office
|
671 North Hunt Club Rd.
|
Winter Park Office
|
120 Belle Terre Pkwy.
|
Longwood, FL
|
1211 N. Orange Ave.
|
Palm Coast, FL
|
Telephone: (407) 774-1347
|
Winter Park, FL
|
Telephone: (386)524-5044
|
Telephone: (407) 755-6707
|
|
Tuskawilla Road Office
|
||
Pleasant Hill Commons Office
|
1295 Tuskawilla Rd., Suite 10
|
Winter Springs Office
|
3307 South Orange Blossom Trl.
|
Winter Springs, FL
|
851 East State Route 434
|
Kissimmee, FL
|
Telephone: (407) 695-5558
|
Winter Springs, FL
|
Telephone: (407) 846-8866
|
Telephone: (407) 327-6064
|
|
Venice Office
|
||
Port Orange Office
|
2057 South Tamiami Trl.
|
|
3751 Clyde Morris Blvd.
|
Venice, FL
|
|
Port Orange, FL
|
Telephone: (941) 496-9100
|
|
Telephone: (386) 322-3730
|
Massachusetts
|
New Jersey
|
Vermont
|
Allendale Office
|
Northvale Office
|
Bennington Office
|
5 Cheshire Rd.
|
220 Livingston St.
|
215 North St.
|
Suite 18
|
Northvale, NJ
|
Bennington, VT
|
Pittsfield, MA
|
Telephone: (201) 750-1501
|
Telephone: (802) 447-4952
|
Telephone: (413) 236-8400
|
||
Ramsey Office
|
||
385 North Franklin Tpk.
|
||
Ramsey, NJ
|
||
Telephone: (201) 934-1429
|
HONORARY DIRECTORS
|
|
Lionel O. Barthold
|
James H. Murphy, D.D.S.
|
Nancy A. McNamara
|
William F. Terry
|
Trustco Bank Officers
|
||
CHAIRMAN, PRESIDENT,
|
BRANCH ADMINISTRATION (Cont.)
|
FINANCIAL SERVICES(Cont.)
|
AND CHIEF EXECUTIVE OFFICER
|
Assistant Vice Presidents (cont.)
|
Officer
|
Robert J. McCormick
|
Nicolette C. Messina
|
Michael D. Bates
|
Gloryvel Morales
|
||
EXECUTIVE VICE PRESIDENT
|
James J. Smith
|
INFORMATION TECHNOLOGY/
|
RETAIL BANKING
|
Jocelyn E. Vizcarra
|
PLANNING AND SYSTEMS/
|
Kevin M. Curley
|
Officers
|
MARKETING
|
Victor J. Berger
|
Senior Vice President
|
|
EXECUTIVE VICE PRESIDENT
|
Ronni H. Domowitz
|
John R. George
|
CORPORATE SERVICES AND
|
Albert N. Estopinal
|
Vice President and
|
RISK
|
Philip J. Kaufman
|
Chief Technology Officer
|
Robert M. Leonard
|
John D. Mariani
|
Volney R. LaRowe
|
Ronald G. Patterson
|
Vice President
|
|
EXECUTIVE VICE PRESIDENT AND
|
Seeranie Ramjeet
|
Adam E. Roselan
|
CHIEF FINANCIAL OFFICER
|
Berkley K. Young
|
Officers
|
Michael M. Ozimek
|
Sean Dougherty
|
|
COLLECTIONS/ OPERATIONS/
|
Jonathan R. Goodell
|
|
EXECUTIVE VICE PRESIDENT
|
CREDIT
|
|
COMMERCIAL BANKING
|
Assistant Vice President
|
LENDING
|
Scot R. Salvador
|
Lesly Jean-Louis
|
Senior Vice President
|
Officer
|
Michelle L. Simmonds
|
|
EXECUTIVE VICE PRESIDENT
|
Aislinn E. Melia
|
Administrative Vice President
|
AND FLORIDA REGIONAL
|
Michelle M. Raymond
|
|
PRESIDENT
|
COMPLIANCE/ RISK/ BSA/
|
Vice Presidents
|
Eric W. Schreck
|
CREDIT ADMINISTRATION
|
Suzanne E. Breen
|
Senior Vice President and Chief
|
Patrick M. Canavan
|
|
GENERAL COUNSEL AND
|
Compliance Officer and Information
|
William J. Chow
|
CORPORATE SECRETARY
|
Security Officer
|
Assistant Vice Presidents
|
Michael Hall
|
Michael J. Ewell
|
Takla A. Awad
|
Administrative Vice President
|
Nancy L. Brown
|
|
ACCOUNTING/FINANCE
|
Michael J. Lofrumento
|
Michael L. Curtis
|
Vice Presidents
|
Vice Presidents
|
Loriann F. Lucarelli
|
Lynn M. Hallenbeck
|
Lara Ann Gough
|
Pratik A. Shah
|
Michael Rydberg
|
Jennifer L. Meadows
|
Officers
|
Officer
|
Assistant Vice President
|
Douglas L. Hall
|
Jeff P. Klingbeil
|
Michael V. Pitnell
|
Joseph Lucarelli
|
Officers
|
Rebecca L. O'Hare
|
|
AUDIT
|
Amanda L. Biance
|
Sara Steinback
|
Director of Internal Audit
|
Michael F. McMahon
|
Lisa Tully
|
Daniel R. Saullo
|
June M. Ryder
|
|
Officers
|
||
Allison R. Downs
|
FINANCIAL SERVICES
|
PERSONNEL/
|
Kenneth E. Hughes Jr.
|
Administrative Vice President and
|
QUALITY CONTROL/
|
Dennis M. Pitaniello
|
Chief Trust Officer
|
TRAINING
|
Patrick J. LaPorta, Esq.
|
Assistant Vice Presidents
|
|
BRANCH ADMINISTRATION
|
Vice President
|
Jason T. Goodell
|
Senior Vice President
|
Thomas M. Poitras
|
Jessica M. Marshall
|
Carly K. Batista
|
Assistant Vice President and
|
|
Assistant Vice Presidents
|
Assistant Corporate Secretary
|
|
Mark J. Cooper
|
Lauren A. Maxwell
|
|
William B. Jansz
|
Assistant Vice President
|
|
Stacy L. Marble
|
John W. Bresonis
|
|
Thomas L. McCormick
|
Trustco Bank
|
Federal savings bank
|
ORE Subsidiary Corp.
|
New York corporation
|
Trustco Realty Corp.
|
New York corporation (Subsidiary of Trustco Bank)
|
Trustco Insurance Agency, Inc.
|
New York corporation (Subsidiary of Trustco Bank)
|
ORE Property, Inc.
|
New York corporation (Subsidiary of Trustco Bank)
|
ORE Property One, Inc.
|
Florida corporation (Subsidiary of ORE Property, Inc.)
|
ORE Property Two, Inc.
|
Florida corporation (Subsidiary of ORE Property, Inc.)
|
|
/s/Crowe LLP
|
New York, New York
|
|
March 1, 2023
|
/s/ Brian C. Flynn
|
/s/ Dennis A. De Gennaro
|
||
Brian C. Flynn
|
Dennis A. De Gennaro
|
||
February 21, 2023
|
February 21, 2023
|
||
/s/ Robert J. McCormick
|
/s/ Thomas O. Maggs
|
||
Robert J. McCormick
|
Thomas O. Maggs
|
||
February 21, 2023
|
February 21, 2023
|
||
/s/ Kimberly A. Russell
|
/s/ Dr. Anthony J.Marinello
|
||
Kimberly A. Russell
|
Dr. Anthony J.Marinello
|
||
February 21, 2023
|
February 20, 2023
|
||
/s/ Lisa M. Lucarelli
|
/s/ Alejandro M. Sanchez
|
||
Lisa M. Lucarelli
|
Alejandro M. Sanchez
|
||
February 21, 2023
|
February 21, 2023
|
||
/s/ Curtis N. Powell
|
/s/ Frank B. Silverman
|
||
Curtis N. Powell
|
Frank B. Silverman
|
||
February 21, 2023
|
February 21, 2023 |
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company for the periods described therein.
|
/s/ Robert J. McCormick
|
||
Robert J. McCormick
|
||
Chairman, President and Chief Executive Officer
|
||
/s/ Michael M. Ozimek
|
||
Michael M. Ozimek
|
||
Executive Vice President and Chief Financial Officer
|